Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p47
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
Provision Reference: 
Character Range: 131445–134485

a combination of the following:

           * Regular meetings between group and component management to discuss business developments and to review performance.

…

           * Controls activities within an IT system that is common for all or some components.

           * Controls within the group's process to monitor Monitoring the system of internal controls, including activities of the internal audit function and self-assessment programs.

…

197.           Existing Appendix 5 is amended to read as follows:

Matters that are relevant to the planning of the work of the component auditor:

…

Matters that are relevant to the conduct of the work of the component auditor:

           * The findings of the group engagement team's tests of controls activities of a processing system that is common for all or some components, and tests of controls to be performed by the component auditor.

…

198.           As a result of the footnote deletion above, subsequent footnotes of this Auditing Standard are re-numbered and references to these footnotes are updated accordingly.

Amendments to ASA 610

199.           Existing paragraph 7 is amended to read as follows:

ASA 315 addresses how the knowledge and experience of the internal audit function can inform the external auditor's understanding of the entity and its environment, the applicable financial reporting framework and the entity's system of internal control, and identification and assessment of risks of material misstatement.  ASA 315 [3] also explains how effective communication between the internal and external auditors also creates an environment in which the external auditor can be informed of significant matters that may affect the external auditor's work.

200.           Existing paragraph A3 is amended to read as follows:

In addition, those in the entity with operational and managerial duties and responsibilities outside of the internal audit function would ordinarily face threats to their objectivity that would preclude them from being treated as part of an internal audit function for the purpose of this ASA, although they may perform controls activities that can be tested in accordance with ASA 330.12 For this reason, monitoring controls performed by an owner-manager would not be considered equivalent to an internal audit function.

201.           Existing footnote 13 in paragraph A4 is amended to read as follows:

See ASA 315 (as amended), paragraph 614(a).

202.           Existing paragraph A10 is amended to read as follows:

The application of a systematic and disciplined approach to planning, performing, supervising, reviewing and documenting its activities distinguishes the activities of the internal audit function from other monitoring controls activities that may be performed within the entity.

203.           Existing paragraph A21 is amended to read as follows:

As explained in ASA 315,[22] significant risks require special audit consideration are risks assessed close to the upper end of the spectrum of inherent risk