For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Component management means management, or those charged with governance, responsible for the preparation of the financial information of a component.
Component materiality means the materiality for a component determined by the group engagement team.
Group means all the components whose financial information is included in the group financial report. A group always has more than one component.
Group audit means the audit of a group financial report.
Group audit opinion means the audit opinion on the group financial report.
Group engagement partner means the partner or other person in the firm who is responsible for the group audit engagement and its performance, and for the auditor’s report on the group financial report that is issued on behalf of the firm. Where joint auditors conduct the group audit, the joint engagement partners and their engagement teams collectively constitute the group engagement partner and the group engagement team. This Auditing Standard does not, however, deal with the relationship between joint auditors or the work that one joint auditor performs in relation to the work of the other joint auditor.
Group engagement team means partners, including the group engagement partner, and staff who establish the overall group audit strategy, communicate with component auditors, perform work on the consolidation process, and evaluate the conclusions drawn from the audit evidence as the basis for forming an opinion on the group financial report.
Group financial report means a financial report that includes the financial information of more than one component. The term “group financial report” also refers to combined financial reports aggregating the financial information prepared by components that have no parent but are under common control.
Group management means management, or those charged with governance, responsible for the preparation of the group financial report.
Group wide controls means controls designed, implemented and maintained by group management over group financial reporting.
Significant component means a component identified by the group engagement team (i) that is of individual financial significance to the group, or (ii) that, due to its specific nature or circumstances, is likely to include significant risks of material misstatement of the group financial report. (Ref: Para. A5-A6)
Reference to “the applicable financial reporting framework” means the financial reporting framework that applies to the group financial report. Reference to “the consolidation process” includes:
- The recognition, measurement, presentation, and disclosure of the financial information of the components in the group financial report by way of consolidation, proportionate consolidation, or the equity or cost methods of accounting; and
- The aggregation in combined financial reports of the financial information of components that have no parent but are under common control.