Microsoft Word A033 2010 iaasb handbook isa 600

Acceptance and Continuance 

Obtaining an Understanding at the Acceptance or Continuance

 Stage (Ref: Para. 12) 

A10.  In the case of a new engagement, the group engagement team’s understanding 

of the group, its components, and their environments may be obtained from: 

•

 

Information provided by group management; 

•

 

Communication with group management; and 

•

 

Where applicable, communication with the previous group engagement 

team, component management, or component auditors. 

A11.  The group engagement team’s understanding may include matters such as the 

following: 

•

 

The group structure, including both the legal and organizational structure 

(that is, how the group financial reporting system is organized). 

•

 

Components’ business activities that are significant to the group, including 

the industry and regulatory, economic and political environments in which 

those activities take place. 

•

 

The use of service organizations, including shared service centers. 

•

 

A description of group-wide controls. 

•

 

The complexity of the consolidation process. 

•

 

Whether component auditors that are not from the group engagement