Document ID: chunk:federal_register_of_legislation:F2022L00712:body:0:p8
Version: federal_register_of_legislation:F2022L00712
Segment Type: other
Provision Reference: 
Character Range: 21594–24669

non-compliance with laws and regulations betweento other auditors within the engagement teama group, including a group engagement partner, component auditors, or other auditors performing work at entities or business unitscomponents of a group for purposes other than the audit of the group financial report. 11

Amendments to ASA 260

23.               Existing paragraph A4 is amended to read as follows:

ASA 600 includes specific matters to be communicated by the group auditors with those charged with governance of the group.[5] The matters communicated may include those brought to the attention of the group auditor by component auditors that the group auditor judges to be significant to the responsibilities of those charged with governance of the group. Component auditors also may communicate matters to those charged with governance of the component.[6]  In those circumstancesWhen the entity is a component of a group, the appropriate person(s) with whom the component auditor communicates depends on the engagement circumstances and the matter to be communicated. In some cases, a number of entities or business unitscomponents may be conducting the same businesses within the same system of internal control and using the same accounting practices. Where those charged with governance of those entities or business unitscomponents are the same (e.g., common board of directors), duplication may be avoided by dealing with these entities or business unitscomponents concurrently for the purpose of communication.

24.               Existing Appendix 1 is amended to read as follows:

Specific Requirements in ASQM 1 and Other Australian Auditing Standards that Refer to Communications with Those Charged With Governance

This appendix identifies paragraphs in ASQM 128 and other Australian Auditing Standards that require communication of specific matters with those charged with governance.  The list is not a substitute for considering the requirements and related application and other explanatory material in Australian Auditing Standards.

           * …

           * ASA 600 Special Considerations―Audits of a Group Financial Report (Including the Work of Component Auditors) – paragraph 5749

           * …

Amendments to ASA 300

25.               The following paragraph 11 is inserted following existing paragraph 10 of this Auditing Standard:

The engagement partner shall review the overall audit strategy and audit plan.

26.               Existing paragraph A9 is amended to read as follows:

The process of establishing the overall audit strategy, subject to the completion of the auditor's risk assessment procedures, may include such matters as:

           * …

           * The amount of resources to be allocated to specific audit areas. For example, the number of team members assigned to attend the physical inventory count at multiple locations, the nature and extent of direction and supervision of component auditors and the review of theirother auditors' work in the case of group audits, or the audit budget in hours to allocate to