Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p7
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 18683–22120

clearly about the scope and timing of their work, and evaluating the results of that work; and

         4.                 Evaluate whether sufficient appropriate audit evidence has been obtained from the audit procedures performed, including with respect to the work performed by component auditors, as a basis for forming an opinion on the group financial report.

Definitions

 1.                For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

         1.                 Aggregation risk – The probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial report as a whole. (Ref: Para. A19)

         2.                 Component – An entity, business unit, function or business activity, or some combination thereof, determined by the group auditor for purposes of planning and performing audit procedures in a group audit. (Ref: Para. A20)

         3.                 Component auditor – An auditor who performs audit work related to a component for purposes of the group audit. A component auditor is a part of the engagement team[10]  for a group audit. (Ref: Para. A21–A23)

         4.                 Component management – Management responsible for a component. (Ref: Para. A24)

         5.                 Component performance materiality – An amount set by the group auditor to reduce aggregation risk to an appropriately low level for purposes of planning and performing audit procedures in relation to a component.

         6.                  Group – A reporting entity for which a group financial report is prepared.

         7.                 Group audit – The audit of a group financial report.

         8.                 Group auditor – The group engagement partner and members of the engagement team other than component auditors. The group auditor is responsible for:

                 1.                  Establishing the overall group audit strategy and group audit plan;

                 2.                Directing and supervising component auditors and reviewing their work;

                 3.              Evaluating the conclusions drawn from the audit evidence obtained as the basis for forming an opinion on the group financial report.

         9.                  Group audit opinion – The audit opinion on the group financial report.

        10.                  Group engagement partner – The engagement partner [11] who is responsible for the group audit. (Ref: Para. A25)

        11.                 Group financial report – A financial report that includes the financial information of more than one entity or business unit through a consolidation process. For purposes of this ASA, a consolidation process includes: (Ref: Para. A26–A28)

                 1.                  Consolidation, proportionate consolidation, or an equity method of accounting;

                 2.                The presentation in a combined financial report of the financial information of entities or business units that have no parent but are under common control or common management; or

                 3.              The aggregation of the financial information of entities or business units such as branches or divisions.

        12.                  Group management – Management responsible for the preparation of the group financial report.

        13.              Group performance