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Accountancy Forum The Profession Accounting and Audit v
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ISA 210 para 9: Audit of Components

 
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ISA 210 para 9: Audit of Components
Ubaid15
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#1
01-13-2010, 12:55 AM
As stated in Para 9.

"When the auditor of a parent entity is also the auditor of its subsidiary, branch or division (component), the factors that influence the decision whether to send a separate engagement letter to the component include the following

1) Who appoints the auditor of the component
2) Whether a separate auditor's report is to be issued on the component
3) Legal requirements
4) The extent of any work performed by other auditors
5) Degree of ownership by parent
6) Degree of independence of the component's management"

My question is "how" do these factors influence the sending of an engagement letter ?
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