Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p12
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 12/42)
Character Range: 42069–45162

level and thereby enable the auditor to draw reasonable conclusions on which to base the auditor's opinion.[11]  The group engagement team shall evaluate whether sufficient appropriate audit evidence has been obtained from the audit procedures performed on the consolidation process and the work performed by the group engagement team and the component auditors on the financial information of the components, on which to base the group audit opinion.  (Ref: Para. A62)

45.               The group engagement partner shall evaluate the effect on the group audit opinion of any uncorrected misstatements (either identified by the group engagement team or communicated by component auditors) and any instances where there has been an inability to obtain sufficient appropriate audit evidence.  (Ref: Para. A63)

Communication with Group Management and Those Charged with Governance of the Group

Communication with Group Management

46.               The group engagement team shall determine which identified deficiencies in internal control to communicate to those charged with governance and group management in accordance with ASA 265.[12]  In making this determination, the group engagement team shall consider:

(a)                Deficiencies in group‑wide internal control that the group engagement team has identified;

(b)                Deficiencies in internal control that the group engagement team has identified in internal controls at components; and

(c)                Deficiencies in internal control that component auditors have brought to the attention of the group engagement team.

47.               If fraud has been identified by the group engagement team or brought to its attention by a component auditor, see paragraph 41(h) of this Auditing Standard, or information indicates that a fraud may exist, the group engagement team shall communicate this on a timely basis to the appropriate level of group management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities.  (Ref: Para. A64)

48.               A component auditor may be required by statute, regulation or for another reason, to express an audit opinion on the financial report of a component.  In that case, the group engagement team shall request group management to inform component management of any matter of which the group engagement team becomes aware that may be significant to the financial report of the component, but of which component management may be unaware.  If group management refuses to communicate the matter to component management, the group engagement team shall discuss the matter with those charged with governance of the group.  If the matter remains unresolved, the group engagement team, subject to legal and professional confidentiality considerations, shall consider whether to advise the component auditor not to issue the auditor's report on the financial report of the component until the matter is resolved.  (Ref: Para. A65)

Communication with Those Charged with Governance of the