Evaluating the Sufficiency and AppropriaEvaluating the Sufficiency and Appropriateness of Audit Evidence Obtained

Evaluating the Sufficiency and Appropriateness of Audit Evidence Obtained

Evaluating the Component Auditors’ Communication and Adequacy of their Work

1. The group engagement team shall evaluate the component auditor’s communication, see paragraph 41 of this Auditing Standard. The group engagement team shall:
   1. Discuss significant matters arising from that evaluation with the component auditor, component management or group management, as appropriate; and
   2. Determine whether it is necessary to review other relevant parts of the component auditor’s audit documentation. (Ref: Para. A61)
2. If the group engagement team concludes that the work of the component auditor is insufficient, the group engagement team shall determine what additional procedures are to be performed, and whether they are to be performed by the component auditor or by the group engagement team.

Sufficiency and Appropriateness of Audit Evidence

1. The auditor is required to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level and thereby enable the auditor to draw reasonable conclusions on which to base the auditor’s opinion.[11] The group engagement team shall evaluate whether sufficient appropriate audit evidence has been obtained from the audit procedures performed on the consolidation process and the work performed by the group engagement team and the component auditors on the financial information of the components, on which to base the group audit opinion. (Ref: Para. A62)
2. The group engagement partner shall evaluate the effect on the group audit opinion of any uncorrected misstatements (either identified by the group engagement team or communicated by component auditors) and any instances where there has been an inability to obtain sufficient appropriate audit evidence. (Ref: Para. A63)