Section Understanding the Component Auditors - ASA 600 - Special Considerations – Audits of a Group Financial Report (Including the Work of Component Auditors) - October 2009 - Understanding the Component Auditors

Understanding the Component AuditorsUnderstanding the Component Auditors

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Understanding the Component Auditors

If the group engagement team plans to request a component auditor to perform work on the financial information of a component, the group engagement team shall obtain an understanding of the following: (Ref: Para. A32‑A35)
1. Whether the component auditor understands and will comply with the ethical requirements that are relevant to the group audit and, in particular, is independent. (Ref: Para. A37)
2. The component auditor’s professional competence. (Ref: Para. A38)
3. Whether the group engagement team will be able to be involved in the work of the component auditor to the extent necessary to obtain sufficient appropriate audit evidence.
4. Whether the component auditor operates in a regulatory environment that actively oversees auditors. (Ref: Para. A36)
If a component auditor does not meet the independence requirements that are relevant to the group audit, or the group engagement team has serious concerns about the other matters listed in paragraph 19(a)‑(c) of this Auditing Standard, the group engagement team shall obtain sufficient appropriate audit evidence relating to the financial information of the component without requesting that component auditor to perform work on the financial information of that component. (Ref: Para. A39‑A41)