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Reporting

3.4 Other Information

ISA 720 (Revised) The Auditor's Responsibilities Relating to Other Information

Other information refers to financial or non-financial information, other
than the financial statements and auditor's report thereon, included in
the entity's annual report that is not necessarily subject to audit.

Examples of other information

 Chairman's report

 Operating and financial review

 Social and environmental reports

 Corporate governance statements

Purpose

If the auditor obtains the final version of the other information before the date of the
auditor’s report, they must read it to identify any material inconsistencies with the
financial statements or the auditor’s knowledge obtained during the audit.

If the auditor identifies a material inconsistency they should:

 Perform limited procedures to evaluate the inconsistency. The auditor should
consider whether it is the financial statements or the other information that
requires amendment.

 Discuss the matter with management and ask them to make the correction.

 If management refuse to make the correction, communicate the matter to those
charged with governance.

 If the matter remains uncorrected the auditor should withdraw from the
engagement if possible under applicable law or regulation as the issue casts
doubt over management integrity.

 If withdrawal is not possible, the auditor must describe the material
misstatement in the auditor's report.

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