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Auditing Standard ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors)
Control EnvironmentControl Environment
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Control Environment
- The group auditor’s understanding of the control environment may include matters such as the following:
- The structure of the governance and management functions across the group, and group management’s oversight responsibilities, including arrangements for assigning authority and responsibility to management of entities or business units in the group.
- How oversight over the group’s system of internal control by those charged with governance is structured and organised.
- How ethical and behavioural standards are communicated and reinforced in practice across the group, (e.g., group-wide programs, such as codes of conduct and fraud prevention programs).
- The consistency of policies and procedures across the group, including a group financial reporting procedures manual.