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describe the auditor’s responsibilities relating to other information in…

- - - - OTHER NOTES TABLE
      - OTHER INFORMATION DEFINITION SLIDE
      - ISA 720 outlines the appropriate response by the auditor when the annual report includes other unaudited information that could undermine the credibility of the financial statements and the auditor’s report.
      - Examples
        
        • management report, management commentary, or operating and financial review or similar reports by those charged with governance (for example, a directors’ report):
        • chairman’s statement;
        • corporate governance statement; and
        • internal control and risk assessment reports (ISA 720, para. A3).
        
        Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report, and are, therefore, outside the scope of this ISA include:
        
        • separate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and pension industries:
        • corporate social responsibility reports
        • sustainability reports
        • diversity and equal opportunity reports (ISA 720, para. A5).
    - - OTHER INFORMATION CONTINUED SLIDE
      - Required to consider this information
        
        This is because other information that is materially inconsistent with the financial statements or the auditor’s knowledge obtained in the audit may indicate that there is a material misstatement of the financial statements or that a material misstatement of the other information exists
        
        material misstatements may also inappropriately influence the economic decisions of the users for whom the auditor’s report is prepared
      - The auditor is required to read and consider the other information (ISA 720, para. 14).
        
        material mistatement
        
        If the auditor identifies that a material inconsistency appears to exist …, [they should] discuss the matter with management and, if necessary, perform other procedures to conclude whether:
        (a) a material misstatement of the other information exists;
        (b) a material misstatement of the financial statements exists; or
        (c) the auditor’s understanding of the entity and its environment needs to be updated (ISA 720, para. 16).
        
        management refuses
        
        revise audited financial statements prior to date of auditor's report
        
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        information obtained after the date of the auditor's report
        
        If the other information is obtained after the date of the auditor’s report and the auditor concludes that a material misstatement exists and is not corrected, after communicating with those charged with governance, the auditor should take appropriate action
        
        1 more item...
      - The revisions to ISA 720 require the auditor’s report to contain ‘a separate section ‘Other Information’, when, at the date of the auditor’s report:
        (a) for an audit of financial statements of a listed entity, the auditor has obtained, or expects to obtain, the other information; or
        (b) for an audit of financial statements of an entity other than a listed entity, the auditor has obtained some or all of the other information’ (ISA 720, para. 21).
        
        This section outlines the auditor’s responsibility for this other information. It will include:
        (a) a statement that management is responsible for the other information;
        (b) an identification of:
        (i) other information, if any, obtained by the auditor prior to the date of the auditor’s report; and
        (ii) for an audit of financial statements of a listed entity, other information, if any, expected to be obtained after the date of the auditor’s report;
        (c) a statement that the auditor’s opinion does not cover the other information and, accordingly, that the auditor does not express an audit opinion or any form of assurance conclusion thereon;
        (d) a description of the auditor’s responsibilities relating to reading, considering and reporting on other information as required by this ISA … (ISA 720, para. 22).