Microsoft Word A033 2010 iaasb handbook isa 600

Terms of Engagement

 (Ref: Para. 14) 

A20. The terms of engagement identify the applicable financial reporting 

framework.

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 Additional matters may be included in the terms of a group audit 

engagement, such as the fact that:  

•

 

The communication between the group engagement team and the 

component auditors should be unrestricted to the extent possible under 

law or regulation; 

                                                 

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   ISA 210, paragraph 8. 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

ISA 600 

 

598

•

 

Important communications between the component auditors, those charged 

with governance of the component, and component management, including 

communications on significant deficiencies in internal control, should be 

communicated as well to the group engagement team; 

•

 

Important communications between regulatory authorities and components 

related to financial reporting matters should be communicated to the group 

engagement team; and 

•

 

To the extent the group engagement team considers necessary, it should be 

permitted: 

○

 

Access to component information, those charged with governance 

of components, component management, and the component 

auditors (including relevant audit documentation sought by the 

group engagement team); and  

○

 

To perform work or request a component auditor to perform work 

on the financial information of the components. 

A21. Restrictions 

imposed 

on: 

•

 

the group engagement team’s access to component information, those 

charged with governance of components, component management, or the 

component auditors (including relevant audit documentation sought by the 

group engagement team); or 

•

 

the work to be performed on the financial information of the components, 

after the group engagement partner’s acceptance of the group audit engagement, 

constitute an inability to obtain sufficient appropriate audit evidence that may affect 

the group audit opinion. In exceptional circumstances it may even lead to 

withdrawal from the engagement where withdrawal is possible under applicable 

law or regulation.