من قبل
Fathi Matbaq , Senior Purchasing Officer , Alghanim Industries
1. The component auditor could be part of the group audit engagement partner's firm in a different location, a network firm, or another firm.
2. Examples of work performed by a component auditor could include:
A firm in one location uses resources from one of their firm's other offices or from another firm to conduct an inventory observation in another location; or
A firm audits consolidated financial statements for a parent company and its subsidiaries, one of which has engaged another external audit firm (a component auditor) to audit its separate financial statements.
3. Group engagement partners are required to gain an understanding of the component auditors and determine the extent the group engagement team will be involved in the work of the component auditors, then choose to either:
Assume responsibility for, and thus be required to be involved in, the work of component auditors, in which case the group engagement team would perform additional procedures and issue the standard report, or
Not assume responsibility for, and accordingly make reference to, the audit of a component auditor in the auditor's report on the group financial statements.
4. When the auditor chooses to assume responsibility for the work of the component auditor:
The group engagement team is required to be involved in the risk assessment of a significant component.
The group engagement team is required to request the component auditor notify the team of any relevant subsequent events.
Additional communications are required.
