Microsoft Word A033 2010 iaasb handbook isa 600

Communication with Group Management and Those Charged with Governance 

of the Group 

Communication with Group Management 

(Ref: Para. 46–48)

 

A64.  ISA 240 contains requirements and guidance on communication of fraud to 

management and, where management may be involved in the fraud, to those 

charged with governance.

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A65.  Group management may need to keep certain material sensitive information 

confidential. Examples of matters that may be significant to the financial 

statements of the component of which component management may be 

unaware include the following: 

•

 

Potential litigation. 

•

 

Plans for abandonment of material operating assets. 

•

 

Subsequent events. 

•

 

Significant legal agreements. 

                                                 

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   ISA 240, paragraphs 40-42. 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

ISA 600 

 

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Communication with Those Charged with Governance of the Group 

(Ref: Para. 49)

 

A66.  The matters the group engagement team communicates to those charged with 

governance of the group may include those brought to the attention of the group 

engagement team by component auditors that the group engagement team judges 

to be significant to the responsibilities of those charged with governance of the 

group. Communication with those charged with governance of the group takes 

place at various times during the group audit. For example, the matters referred to 

in paragraph 49(a)–(b) may be communicated after the group engagement team 

has determined the work to be performed on the financial information of the 

components. On the other hand, the matter referred to in paragraph 49(c) may be 

communicated at the end of the audit, and the matters referred to in paragraph 

49(d)–(e) may be communicated when they occur. 

 

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SPECIAL CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS  

(INCLUDING THE WORK OF COMPONENT AUDITORS) 

ISA 600 APPENDIX 1

 

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