Amendments to ASA 600Amendments to ASA 600

Amendments to ASA 600

1. The following paragraph and footnote are inserted after existing paragraph 44 of this Auditing Standard:

In applying ASA 240,[28] the group auditor shall take responsibility for obtaining an understanding of identified fraud or suspected fraud.

1. Existing paragraph 45 is amended to read as follows:

The group auditor shall request the component auditor to communicate matters relevant to the group auditor’s conclusion with regard to the group audit. Such communication shall include: (Ref: Para. A144)

(a) …

(h) Fraud or suspected fraud involving:

(i) cComponent management,;

(ii) eEmployees who have significant roles in the group’s system of internal control at the component; or

(iii) oOthers, except for matters that are clearly inconsequential where the fraud resulted in a material misstatement ofto the component financial information;

(i) …

1. Existing paragraph 55 is amended to read as follows:

If fraud or suspected fraud has been identified by the group auditor or brought to its attention by a component auditor (see paragraph 45(h)), or information indicates that a fraud or suspected fraud may exist, the group auditor shall communicate this on a timely basis to the appropriate level of group management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities. (Ref: Para. A160)

1. Existing paragraph 57 is amended to read as follows:

The group auditor shall communicate the following matters with those charged with governance of the group, in addition to those required by ASA 260[30] and other ASAs: (Ref: Para. A163)

(a) …

(d) Fraud or suspected fraud involving:

(i) gGroup management or, component management,;

(ii) eEmployees who have significant roles in the group’s system of internal control; or

(iii) oOthers, except for matters that are clearly inconsequential when the fraud resulted in a material misstatement of the group financial report.

1. Existing paragraph 59 is amended to read as follows:

In accordance with ASA 230, the audit documentation for a group audit engagement needs to be sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing and extent of audit procedures performed, the evidence obtained, and the conclusions reached with respect to significant matters arising during the group audit. In applying ASA 230, the group auditor shall include in the audit documentation: (Ref: Para. A166–A169, A179–A182)