Acceptance and ContinuanceAcceptance and Continuance

Acceptance and Continuance

1. Before accepting or continuing the group audit engagement, the group engagement partner shall determine whether sufficient appropriate audit evidence can reasonably be expected to be obtained to provide a basis for forming an opinion on the group financial report. (Ref: Para. A32–A35)
2. If, after the acceptance or continuance of the group audit engagement, the group engagement partner concludes that sufficient appropriate audit evidence cannot be obtained, the group engagement partner shall consider the possible effects on the group audit. (Ref: Para. A36)

Terms of the Engagement

1. In applying ASA 210,[14] the group auditor shall obtain the agreement of group management that it acknowledges and understands its responsibility to provide the engagement team with: (Ref: Para. A37)
   1. Access to all information of which group management is aware that is relevant to the preparation of the group financial report such as records, documentation and other matters;
   2. Additional information that the engagement team may request from group management or component management for the purpose of the group audit; and
   3. Unrestricted access to persons within the group from whom the engagement team determines it necessary to obtain audit evidence.

Restrictions on Access to Information or People Outside the Control of Group Management

1. If the group engagement partner concludes that group management cannot provide the engagement team with access to information or unrestricted access to persons within the group due to restrictions that are outside the control of group management, the group engagement partner shall consider the possible effects on the group audit. (Ref: Para. A38–A46)

Restrictions on Access to Information or People Imposed by Group Management

1. If the group engagement partner concludes that: (Ref: Para. A43–A46)
   1. It will not be possible for the group auditor to obtain sufficient appropriate audit evidence due to restrictions imposed by group management; and
   2. The possible effect of this limitation will result in a disclaimer of opinion on the group financial report,

the group engagement partner shall either:

1. In the case of an initial engagement, not accept the engagement, or, in the case of a recurring engagement, withdraw from the engagement, when withdrawal is possible under applicable law or regulation; or
2. When law or regulation prohibit an auditor from declining an engagement or when withdrawal from an engagement is not otherwise possible, having performed the audit of the group financial report to the extent possible, disclaim an opinion on the group financial report.