31386 paragraphs found
This ASA does not require component performance materiality to be determined for each class of transactions, account balance or disclosure for components at which audit procedures are performed. However, if, in the specific circumstances of the group, …
The determination of component performance materiality is not a simple mechanical calculation and involves the exercise of professional judgement. Factors the group auditor may take into account in setting component performance materiality include the …
To address aggregation risk, paragraph 35(a) requires component performance materiality to be lower than group performance materiality. As explained in paragraph A118 , as the extent of disaggregation across components increases, a lower component …
In some cases, further audit procedures may be performed by the group auditor or a component auditor on a significant class of transactions or significant account balance as a single population (i.e., not disaggregated across components). In such cases, …
Considerations When Component Auditors Are Involved Communicating Component Performance Materiality (Ref: Para. 36 ) …
Component performance materiality is based, at least in part, on expectations about the nature, frequency, and magnitude of misstatements in the component financial information. Therefore, ongoing communication between the component auditor and the group …
The group auditor may determine that the financial information of several components can be considered as one population for the purpose of performing further audit procedures, for example, when transactions are considered to be homogeneous because they …
When further audit procedures are performed centrally, component auditors may still be involved. For example, when the group has multiple shared service centres, the group auditor may involve component auditors in the performance of further audit …