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SA 720 Revised For Auditor's responsibility relating to other information 01 April 2018

Scope

  • Responsibility to other information Included in Annual report
  • It can be Financial or non Financial
  • Example Director’s report/Corporate governance report
  • It is Not an assurance engagement 
  • Requirement of “Corporate” entity

Auditor’s Responsibility

  • Obtain Other Information Discuss with management 
    • Make appropriate arrangement to obtain these documents prior to AR 
    • If information is not available, then Request management to provide WR version of these documents
  • Reading of other information 
    • Objective is to find out material inconsistency between Other information and F.St. and/or Our understanding and reality 
    • Auditor shall Remain alert, about material misstatement (MM)

Responses to material inconsistency found

After Date of Audit report

  • Perform necessary procedures if other Info. Is corrected 
  • Receive corrections 
  • Take legal rights and obligations 
  • Right to hear: Discussion in general meeting 
  • If mistake is present in F.St. Apply SA 560

Reporting

  • Include a separate section “Other Information” in Audit R. 
  • Management is responsible for other information 
  • Identification of other info. 
  • Obtained prior to date of AR, and 
  • Expected to be obtained prior to date of AR (Listed) 
  • State that there is no opinion expressed on other info. 
  • Describe auditor’s responsibility 
  • Statement that there is no uncorrected MM on OI received before AR and whether there is nothing to report or other case 
  • Statement that “we will read other info. which is expected to be received”









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