The group engagement team’s understanding of the component auditor’s professional competence may include whether the component auditor:  Possesses an understanding of auditing and other standards applicable to the group audit that is sufficient to fulfill …

The group engagement team cannot overcome the fact that a component auditor is not independent by being involved in the work of the component auditor or by performing additional risk assessment or further audit procedures on the financial information of …

However, the group engagement team may be able to overcome less than serious concerns about the component auditor’s professional competency (for example, lack of industry specific knowledge), or the fact that the component auditor does not operate in an …

Where law or regulation prohibits access to relevant parts of the audit documentation of the component auditor, the group engagement team may request the component auditor to overcome this by preparing a memorandum that covers the relevant …

The auditor is required: [20]   When establishing the overall audit strategy, to determine:  Materiality for the financial report as a whole; and  If, in the specific circumstances of the entity, there are particular classes of transactions, account …

To reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements in the group financial report exceeds materiality for the group financial report as a whole, component materiality is set lower than …

Component materiality is determined for those components whose financial information will be audited or reviewed as part of the group audit in accordance with paragraphs  26 ,  27(a) and  29 .  Component materiality is used by the component auditor to …

A threshold for misstatements is determined in addition to component materiality.  Misstatements identified in the financial information of the component that are above the threshold for misstatements are communicated to the group engagement …

In the case of an audit of the financial information of a component, the component auditor (or group engagement team) determines performance materiality at the component level.  This is necessary to reduce to an appropriately low level the probability …

The group engagement team’s determination of the type of work to be performed on the financial information of a component and its involvement in the work of the component auditor is affected by:  The significance of the component;  The identified …