164 paragraphs found
The group engagement team may identify a component as a significant component because that component is likely to include significant risks of material misstatement of the group financial report due to its specific nature or circumstances. In that case, …
The group engagement team may design audit procedures that respond to a likely significant risk of material misstatement of the group financial report. For example, in the case of a likely significant risk of inventory obsolescence, the group engagement …
Depending on the circumstances of the engagement, the financial information of the components may be aggregated at various levels for purposes of the analytical procedures. The results of the analytical procedures corroborate the group engagement team’s …
The group engagement team’s decision as to how many components to select in accordance with paragraph 29 , which components to select, and the type of work to be performed on the financial information of the individual components selected may be affected …
A review of the financial information of a component may be performed in accordance with ASRE 2410. [21] , [22] The group engagement team may also specify additional audit procedures to supplement this …
As explained in paragraph A13 , a group may consist only of components that are not significant components. In these circumstances, the group engagement team can obtain sufficient appropriate audit evidence on which to base the group audit opinion by …
Factors that may affect the group engagement team’s involvement in the work of the component auditor include: The significance of the component; The identified significant risks of material misstatement of the group financial report; and The group …
Forms of involvement in the work of a component auditor other than those described in paragraphs 30‑31 and 42 may, based on the group engagement team’s understanding of the component auditor, include one or more of the following: Meeting with component …
The consolidation process may require adjustments to amounts reported in the group financial report that do not pass through the usual transaction processing systems, and may not be subject to the same internal controls to which other financial …
If effective two‑way communication between the group engagement team and the component auditors does not exist, there is a risk that the group engagement team may not obtain sufficient appropriate audit evidence on which to base the group audit opinion. …