Amendments to ASA 300Amendments to ASA 300

Amendments to ASA 300

1. The following paragraph 11 is inserted following existing paragraph 10 of this Auditing Standard:

The engagement partner shall review the overall audit strategy and audit plan.

1. Existing paragraph A9 is amended to read as follows:

The process of establishing the overall audit strategy, subject to the completion of the auditor’s risk assessment procedures, may include such matters as:

 …

 The amount of resources to be allocated to specific audit areas. For example, the number of team members assigned to attend the physical inventory count at multiple locations, the nature and extent of direction and supervision of component auditors and the review of theirother auditors’ work in the case of group audits, or the audit budget in hours to allocate to high risk areas;

 …

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

CONSIDERATIONS IN ESTABLISHING THE OVERALL AUDIT STRATEGY

…

Characteristics of the Engagement

 …

 The expected audit scopecoverage, including the number and locations of components at which audit work is expected to be performed for purposes of a group audit, and the extent to which component auditors will be involvedto be included.

 The nature of the control relationships between a parent and its entities or business unitscomponents that determine how the group is to be consolidated.

 The extent to which components are audited by other auditors.

 …

 The requirementneed for an audit of a financial report for statutory, regulatory or other reasons, audit of a stand-alone financial report in addition to an audit work performed for consolidation purposes of a group audit.

 …

Reporting Objectives, Timing of the Audit, and Nature of Communications

 …

 Communication with component auditors of components regarding the expected types and timing of reports to be issued and other communications in connection with the audit work performed for purposes of the group auditof components.

 The expected nature and timing of communications among engagement team members, including the nature and timing of team meetings and timing of the review of audit work performed.

 …

Significant Factors, Preliminary Engagement Activities, and Knowledge Gained on Other Engagements

 The determination of materiality in accordance with ASA 32016 and, where applicable:

o The determination of component performance materiality for components and communication thereof to component auditors in accordance with ASA 600.