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Auditing Standard ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors)
MaterialityMateriality
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Materiality
- In applying ASA 320[25] and ASA 450,[26] when classes of transactions, account balances or disclosures in the group financial report is disaggregated across components, for purposes of planning and performing audit procedures, the group auditor shall determine:
- Component performance materiality. To address aggregation risk, such amount shall be lower than group performance materiality. (Ref: Para. A116–A120)
- The threshold above which misstatements identified in the component financial information are to be communicated to the group auditor. Such threshold shall not exceed the amount regarded as clearly trivial to the group financial report. (Ref: Para. A121)
Considerations When Component Auditors Are Involved
- The group auditor shall communicate to the component auditor the amounts determined in accordance with paragraph 35. (Ref: Para: A122–A123)