Document ID: chunk:federal_register_of_legislation:F2025C00096:body:0:p37
Version: federal_register_of_legislation:F2025C00096
Segment Type: other
Provision Reference: 
Character Range: 106276–109277

back on matters communicated by the group auditor.

 1.          The communications between the group auditor and component auditors depend on the facts and circumstances of the group audit engagement, including the nature and extent of involvement of the component auditors and the degree to which the group auditor and component auditors are subject to common systems of quality management or common network requirements or network services.

Form of communications

 1.          The form of the communications between the group auditor and component auditors may vary based on factors such as the nature of the audit work the component auditors have been requested to perform, and the extent to which communication capabilities are integrated into the audit tools used for the group audit.

 2.          The form of communications also may be affected by such factors as:

           * The significance, complexity or urgency of the matter.

           * Whether the matter has been or is expected to be communicated to group management and those charged with governance of the group.

 1.          Communication between the group auditor and the component auditor may not necessarily be in writing.  However, the group auditor's verbal communications with the component auditors may be supplemented by written communication, such as a set of instructions regarding the work to be performed, when the group auditor wants to give particular attention to, or promote a mutual understanding about, certain matters.  In addition, the group auditor may meet with the component auditor to discuss significant matters or to review relevant parts of the component auditor's audit documentation.

 2.          Paragraph 45 requires the group auditor to request the component auditor to communicate matters relevant to the group auditor's conclusion with regard to the group audit.  As explained in paragraph A146, the form and content of the component auditor's deliverables are influenced by the nature and extent of the audit work the component auditor has been requested to perform.

 3.          Regardless of the form of communication, the documentation requirements of this and other ASAs apply.

Timing of communications

 1.          The appropriate timing of communications will vary with the circumstances of the engagement.  Relevant circumstances may include the nature, timing and extent of work to be performed by the component auditor and the action expected to be taken by the component auditor.  For example, communications regarding planning matters may often be made early in the audit engagement and, for an initial group audit, may be made as part of agreeing the terms of the engagement.

Non-compliance with laws or regulations (Ref: Para. 25, 29)

 1.          In applying ASA 250,[68] the group engagement partner may become aware of information about non-compliance or suspected non-compliance with laws or regulations.  In such circumstances, the group engagement partner may have