Amendments to ASA 600Amendments to ASA 600

Amendments to ASA 600

1. Existing paragraph 17 is amended to read as follows:

The auditor is required to identify and assess the risks of material misstatement through obtaining an understanding of the entity and its environment, the applicable financial reporting framework and the system of internal control.7 The group engagement team shall:

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1. Existing paragraph A6 is amended to read as follows:

The group engagement team may also identify a component as likely to include significant risks of material misstatement of the group financial report due to its specific nature or circumstances. (that is, risks that require special audit consideration14). For example, a component could be responsible for foreign exchange trading and thus expose the group to a significant risk of material misstatement, even though the component is not otherwise of individual financial significance to the group.

1. Existing footnote 17 of paragraph A23 is amended to read as follows:

See ASA 315, paragraphs A17-A41A27–A73.

1. Existing footnote 19 of paragraph A28 is amended to read as follows:

See ASA 240, paragraph 1516; and ASA 315, paragraph 1017.

1. Existing paragraph 1 of Appendix 2 is amended to read as follows:

Group-wide controls may include a combination of the following:

 Regular meetings between group and component management to discuss business developments and to review performance.

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 Controls activities within an IT system that is common for all or some components.

 Controls within the group’s process to monitor Monitoring the system of internal controls, including activities of the internal audit function and self-assessment programs.

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1. Existing Appendix 5 is amended to read as follows:

Matters that are relevant to the planning of the work of the component auditor:

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Matters that are relevant to the conduct of the work of the component auditor:

 The findings of the group engagement team’s tests of controls activities of a processing system that is common for all or some components, and tests of controls to be performed by the component auditor.

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1. As a result of the footnote deletion above, subsequent footnotes of this Auditing Standard are re-numbered and references to these footnotes are updated accordingly.