Document ID: chunk:federal_register_of_legislation:F2023C00341:reg:4:p10
Version: federal_register_of_legislation:F2023C00341
Segment Type: reg
Provision Reference: reg 4 (pt 10/42)
Character Range: 36241–39317

and the date of the auditor's report on the group financial report, and that may require adjustment to or disclosure in the group financial report.

39.               Where component auditors perform work other than audits of the financial information of components, the group engagement team shall request the component auditors to notify the group engagement team if they become aware of subsequent events that may require an adjustment to or disclosure in the group financial report.

Communication with the Component Auditor

40.               The group engagement team shall communicate its requirements to the component auditor on a timely basis.  This communication shall set out the work to be performed, the use to be made of that work, and the form and content of the component auditor's communication with the group engagement team.  It shall also include the following:  (Ref: Para. A57, A58, A60)

(a)                A request that the component auditor, knowing the context in which the group engagement team will use the work of the component auditor, confirms that the component auditor will cooperate with the group engagement team.  (Ref: Para. A59)

(b)                The ethical requirements that are relevant to the group audit and, in particular, the independence requirements.

(c)                In the case of an audit or review of the financial information of the component, component materiality (and, if applicable, the materiality level or levels for particular classes of transactions, account balances or disclosures) and the threshold above which misstatements cannot be regarded as clearly trivial to the group financial report.

(d)                Identified significant risks of material misstatement of the group financial report, due to fraud or error, that are relevant to the work of the component auditor.  The group engagement team shall request the component auditor to communicate on a timely basis any other identified significant risks of material misstatement of the group financial report, due to fraud or error, in the component, and the component auditor's responses to such risks.

(e)                A list of related parties prepared by group management, and any other related parties of which the group engagement team is aware.  The group engagement team shall request the component auditor to communicate on a timely basis related parties not previously identified by group management or the group engagement team.  The group engagement team shall determine whether to identify such additional related parties to other component auditors.

41.               The group engagement team shall request the component auditor to communicate matters relevant to the group engagement team's conclusion with regard to the group audit.  Such communication shall include:  (Ref: Para. A60)

(a)                Whether the component auditor has complied with ethical requirements that are relevant to the group audit, including independence and professional competence;

(b)                Whether the component auditor has complied