Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p61
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 174541–177579

regulation;

           * Requesting the component auditor to prepare and provide a memorandum that addresses the relevant information and holding discussions with the component auditor, if necessary, to discuss the contents of the memorandum; or

           * Discussing with the component auditor the procedures performed, the evidence obtained and the conclusions reached by the component auditor.

    It is a matter of professional judgement whether one or more of the actions described above may be sufficient to overcome the restrictions depending on the facts and circumstances of the group audit.

 1.       When access to component auditor audit documentation is restricted, the group auditor's documentation nonetheless needs to comply with the requirements of the ASAs, including those relating to the documentation of the nature, timing and extent of the group auditor's direction and supervision of component auditors and the review of their work.  The guidance in paragraphs A148–A149 may be helpful in determining the extent of the group auditor's review of the component auditor audit documentation in these circumstances.  Paragraphs A176 and A177 provide examples of circumstances in which certain component auditor audit documentation may be included in the group auditor's audit file.

 2.       If the group auditor is unable to overcome restrictions on access to the component auditor audit documentation, the group auditor may need to consider whether a scope limitation exists that may require a modification to the opinion on the group financial report.  See paragraph A45.

Appendix 1

(Ref: Para. A42)

Illustration 1:  [Deleted by the AUASB]  Refer [Aus] Illustration 1A

[Aus] Illustration 1A:  Illustration of Independent Auditor's Report When the Group Auditor Is Not Able to Obtain Sufficient Appropriate Audit Evidence on Which to Base the Group Audit Opinion – General Purpose Financial Report, Qualified Opinion under the Corporations Act 2001
   For purposes of this illustrative auditor's report, the following circumstances are assumed:

      * The audit is a group audit of a listed company with subsidiaries (i.e., ASA 600 applies).

      * The consolidated financial report is prepared by the directors of the company in accordance with Australian Accounting Standards (a general purpose framework). The financial report is prepared under the Corporations Act 2001.

      * The terms of the audit engagement reflect the description of the directors' responsibility for the consolidated financial report in ASA 210.

      * The group auditor is unable to obtain sufficient appropriate audit evidence relating to a component accounted for by the equity method (recognised at $15 million in the statement of financial position, which reflects total assets of $60 million) because the group auditor did not have access to the accounting records, management, or auditor of the component.

      * The group auditor has read the audited financial report of the component as at 31 December, 20X1,