ISA 720 Auditors Responsibilities 11.

objectives of the auditor are:

Relating to Other Information
Consider if there is a material
SCOPE inconsistency between other
information and the financial
1 It deals with the auditors responsibilities
statements or auditors knowledge
relating to other information included in
obtained in the audit
annual report.
Respond appropriately when
2. Written in the context of an audit of identify material inconsistencies.
financial statements by an independent Report in accordance with ISA
auditor
DEFINITION
3. requiring auditor to read and consider
12. (A) Annual report - A document, or
the other information because any
combination of documents, prepared
inconsistency with the FS or auditors
typically on an annual basis by
knowledge can indicate a material
management. annual report contains or
misstatement of the FS with undermine
accompanies the financial statements and
the credibility of the FS and auditors
the auditors report.
report
(B) Misstatement of other information -
4. Assist the auditor in complying with
exists when the other information is
relevant ethical requirements.
incorrectly stated or otherwise misleading.
5. Other information may include amounts
(C) Other information - Financial or non-
or other items intended to be the same as
financial information included in an
the amount in the FS.
entitys annual report.
6. auditors responsibilities relating to
REQUIREMENTS
other information apply regardless of
whether the other information is obtained Obtaining the Other Information
by the auditor prior to, or after, the date of
the auditors report. 13. Auditor Shall:

7. The rule does not apply to preliminary Determine which document is the
announcements of financial information annual report and entitys planned
and Securities offering documents manner and timing of the issuance
Make arrangements with the
8. Do not constitute an assurance management to have a timely
engagement on other information or manner and the final version of the
impose an obligation on the auditor to documents comprising annual
obtain assurance about the other report.
information. If some or all the documents will
9. Law or regulation may impose not be available after the date of
additional obligations on the auditor auditors report - request
management to have a written
representation of the final version
of the document to present when
EFFECTIVE DATE
auditor is available
10. Law or regulation may impose
Reading and Considering the Other
additional obligations on the auditor.
Information

14. auditor shall read other information

OBJECTIVES and, in doing so shall:
 Consider the material Consider implications for auditors
inconsistency between other report and communicate how the
information and in the financial auditor plans to address material
statement. Compare selected misstatement
amounts or other items in the other Withdrawing from the engagement
information
Consider material inconsistency 19. If auditor fins that material
between other information and the misstatement exists in other information
auditors knowledge, through audit obtained after date of auditor;s report,
evidence and conclusions reached auditor shall:
in the audit If corrected - perform procedures
15. auditor shall remain alert for necessary
indications that other information not If not corrected take appropriate
related to financial statements or auditors actions considering auditors legal
knowledge can be materially misstated rights and obligations

Responding When a Material Inconsistency Responding When a Material Misstatement

Appears to Exist or Other Information in the Financial Statements Exists or the
Appears to be Materially Misstated Auditors Understanding of the Entity and
Its Environment Needs to be Updated
16. If auditor identifies material
inconsistency, perform other procedures 20. if auditor concludes material
to conclude whether: misstatement, auditor shall respond
appropriately in accordance with the other
Material misstatement of other ISAs
information and financial
statements exists
Auditors understanding of the Reporting
entity and its environment needs to
be updated 21. auditors report shall include a
separate section namely Other
Responding When the Auditor Concludes Information or other appropriate heading
That a Materially Misstatement of the when at the date of auditors report:
Other Information Exists
Auditors has obtained or expect to
17. Auditor shall request management to
obtained the other information
correct other information if proven that Auditor has obtained some or all of
there is a material misstatement. If
other information
management:
22. the Other Information section shall
Agree to make correction auditor include:
shall determent the correction has
been made Statement that management is
Refuses to make correction responsible for the other
auditor shall communicate with information
governance to request that the Identification of:
correction be made. o Other information obtained
by the auditor
18. If the information has not been o Other information expected
corrected after communicating, auditor
to be obtained
shall take actions including:
Statement that auditors opinion
does not cover the other
information
 Description of auditors A3. Annual report may be single
responsibilities to reading, document. One or more of the following
considering and reporting on other documents may form part of the annual
information report
Other information obtained prior to
Management report, management
the date of auditors report stated
commentary, or operating and
that auditor has nothing to report
financial review or similar reports
or concluded that there is an
Chairmans statement
uncorrected material misstatement
Corporate governance statement
23. Auditor expresses a qualified or Internal control and risk
adverse opinion, auditor shall consider the assessment reports
implication of opinion
A4. Annual reports may be in printed form
or electronically.
Reporting prescribed by Law or Regulation A5. Annual report can present differently
to meet the information needs of a
24. If audit is required by law to use a
specific stakeholder group or to comply
specific layout or wording for other
with a specific regulatory objective.
information, auditors report shall refer to
Example of reports:
ISA only if it includes:
Separate industry or regulatory
Identification of other information
reports
Description of auditors
Corporate social responsibility
responsibilities
reports
Explicit statement addressing the
Sustainability reports
outcome of auditors work
Diversity and equal opportunity
Documentation reports
Product responsibility reports
25. auditor shall include in the audit Labor practices and working
documentation: conditions reports
Documentation of the procedures Human rights reports
performed
Final version of the other
information in which auditor Misstatement of the Other Information
performed
A6. If a particular matter is disclosed in
Application and Other Explanatory the other information, other information
Material may omit or obscure information that is
necessary for a proper understanding of
Definitions that matter.
Annual Report A7. Concept of materiality may be
discussed in a framework applicable to the
A1. The content can be define by law,
other information. There may be cases
regulation or custom, however, content
where no applicable framework that
may vary within jurisdiction and from one
includes a discussion of the concept of
jurisdiction to another.
materiality, the following characteristics
A2. Typically prepared on annual basis. can determine if misstatement of the
When FS being audited, it covers less than other information is material:
or more than 1 year, annual report may
also be the same.
 Considering the common
information needs of users as a
group
Considering whether users would
be influenced by the effect of the
uncorrected misstatement
Judgments about materiality
involve both qualitative and
quantitative considerations
Other Information
A8. Appendix 1 contains examples of
amounts or other items that may be
included in the other information
A9. In some cases, applicable financial
reporting framework requires specific
disclosures but can be located outside of
the FS
A10. XBRL tags do not represent other
information
Obtaining the Other Information
A11. In some cases, documents
comprising the annual reports are not
clear. In such cases, the timing and
purpose of the documents are needed to
determine which documents are needed
for annual reports.
A12. When annual reports are presented
in different language or when there have
multiple annual reports due to different
legislation, consideration may be given as
to whether one or more than one of the
annual reports for part of the other
information.
A13. Auditor may communicate with
management:
Auditors expectation in obtaining
the final version of the annual
report in a timely manner.
Possible implications when the
other information is obtained after
the date of the auditors report
A14. Communication referring to a13 is
appropriate for example:
Initial audit engagement
Change in management or those
charged with governance
Other information is expected to be
obtained after the date of the
auditors report
A15. Instances where the other
information are needed to be approve
prior to issuance, the final version of other
information are the one that has been
approved.
A16. In some cases, annual report may be
single document to be released. In other
cases, such documents may not be
required to be released until a later time.
A17. If the auditor is unable to ascertain
the purpose or timing of such document,
the document is not considered other
information for purposes of this ISA.
A18. Obtaining the other information in a
timely manner enables any revisions that
are found to be necessary to be made to
the financial statements, the auditors
report, or the other information prior to
their issuance.
A19. Other information obtained not on
the entitys website but on the entity itself
is the relevant document which the
auditor would perform procedures
A20. Auditor is not precluded to date or
issue the auditors report if the auditor has
not yet obtained some of all of the other
information.
A21. When other information is dated after
the date of auditors report, he is not
required to update the procedures
A22. ISA 580 establishes requirements and
provides guidance on the use of written
representations. Auditor may find it useful
to request other written representations,
for example, that:
All the documents that it expects to
issue that may comprise other
information;
The financial statements are
consistent with one another, and
the other information does not
 contain any material
misstatements;
Management intends to prepare
and issue such other information
and the expected timing of such
issuance.
Reading and Considering the Other
Information
A23. The auditor is required to plan and
perform the audit with professional
skepticism by considering the other
information includes and being alert to
information that may be inconsistent with
FS or auditors knowledge.
A24. The engagement partner is required
to take responsibility for the direction,
supervision and performance of the audit
engagement. Factors that may be taken
into account when determining the
appropriate engagement team members
to address the requirements of paragraphs
1415, include:
The relative experience of
engagement team members.
Whether the engagement team
members to be assigned the tasks
have the relevant knowledge to
identify inconsistencies between
the other information and that
knowledge.
Degree of judgement involved in
addressing the requirements of
paragraph 14-15
Inquiries of a component auditor in
addressing other information
Considering Whether There is a Material
Inconsistency between the Other
Information and the Financial Statements
A25. May include amount or other items
that are intended to be the same as the
amounts in the FS. May include tables,
chart or graphs, disclosure providing
greater detail and descriptions of the
financial results such as total research
and development was XXX in 20XX
A26. Auditor is not required to compare all
amounts in the other information that are
intended to be the same as in the financial
statements.
A27. Amounts or other items to compare
depends on the following factors:
Significance of the amount or other
item
If quantitative, relative size of the
amount compared with accounts or
items in FS
Sensitivity of the particular amount
or other item.
A28. Procedures applicable to address the
requirement on par 14a
For Information intended to be the
same as the FS, comparing the
information to the FS
For information intended to convey
same meaning as disclosure in FS,
compare words used and
significance of differences in
wording used and find out of it
imply different meaning
Obtain reconciliation between an
amount within the other
information and the financial
statements.
A29. Evaluation of consistency of selected
amounts or other information with the
financial statement includes the manner of
their presentation compared to the FS
Considering Whether There Is a Material
Inconsistency between the Other
Information and the Auditors Knowledge
Obtained in the Audit
A30. Amounts or items include in the
Other information
A disclosure of the units produced,
or a table summarizing such
production by geographical region.
A statement that The company
introduced product X and product Y
during the year.
A summary of the locations of the
entitys major operations, such as
 the entitys major center of
operation is in country X, and there
are also operations in countries Y
and Z.
A31. ISA 315 (Revised) sets out the
auditors required understanding, which
includes such matters as obtaining an
understanding of:
The relevant industry, regulatory,
and other external factors;
The nature of the entity;
The entitys selection and
application of accounting policies;
The entitys objectives and
strategies;
The measurement and review of
the entitys financial performance;
and
The entitys internal control.
A32. The auditors knowledge obtained in
the audit may also include matters that
are prospective in nature like future cash
flow.
A33. Auditor may focus in the other
information that that a misstatement of
the other information could be material.
A34. The auditors recollection of the audit
evidence obtained and conclusions
reached in the audit is sufficient to
consider whether there is a material
inconsistency between the other
information and the auditors knowledge
obtained in the audit.
A35. Referring to relevant audit
documentation or making inquiries of
relevant members of the engagement
team or relevant component auditors is
appropriate as a basis for the auditors
consideration of whether a material
inconsistency exists.
A36. It may not be necessary for the
auditor to refer to relevant audit
documentation, or to make inquiries of
relevant members of the engagement
team or relevant component auditors
about any matter included in the other
information.
Remaining Alert for Other Indications that
the Other Information Appears to Be
Materially Misstated
A37. Other information may include items
not related to FS or beyond auditors
knowledge like statement of greenhouse
gas emissions
A38. alert for other indications that other
information that may not be related to FS
or beyond auditors knowledge can be
misstated or misleading. Auditor shall
identify matters such as
Differences between the other
information and the general
knowledge that lead the auditor to
believe that the other information
appears to be materially misstated;
or
An internal inconsistency in the
other information that leads the
auditor to believe that the other
information appears to be
materially misstated.
Responding When a Material Inconsistency
Appears to Exist or Other Information
Appears to Be Materially Misstated
A39. In case of inconsistency, the auditor
may request management to support for
the basis of managements statements in
the other information. Managements
explanation can be enough to prove that
other information is not materially
misstated.
A40. Discussion with management may
provide information that supports the
auditors conclusion that a material
misstatement of the other information
exists.
A41. there may be instances where other
information is not consistent with the
financial statements or the auditors
knowledge obtained in the audit.
A42. Auditor may perform to conclude
whether a material misstatement of the
other information exists are matters of the
auditors professional judgment in the
circumstances.
A43. When the auditor may not be able to
fully assess managements responses to
the auditors inquiries, the auditor may be
satisfied that a material inconsistency no
longer appears to exist When the auditor
is unable to tell if a material inconsistency
no longer appears to exist, the auditor
may request management to consult with
a qualified third party. If the auditor may
not be able to conclude whether or not a
material misstatement of the other
information exists. Actions the auditor
may then take include one or more of the
following:
Obtaining advice from the auditors
legal counsel;
Considering the implications for the
auditors report
Withdrawing from the audit
Responding When the Auditor Concludes
That a Material Misstatement of the Other
Information Exists
Responding When the Auditor Concludes
That a Material Misstatement Exists in
Other Information Obtained prior to the
Date of the Auditors Report
A44. The auditor may analyze the
explanation given by management for not
making the correction if it gives doubt on
the integrity management like when
intentionally wants to mislead the auditor.
The auditor may also consider it
appropriate to seek legal advice.
Reporting Implications
A45. A disclaimer of opinion on the
financial statements may be appropriate
when the refusal to correct the material
misstatement of the other information
Withdrawal from the Engagement
A46. Withdrawal may be appropriate when
it includes the refusal to correct the
material misstatement of the other
information cast to call into question the
reliability of representations obtained from
them during the audit.
Considerations specific to public sector
entities
A47. In the public sector, withdrawal from
the engagement may not be possible. May
issue a report to the legislature to take
other appropriate actions.
Responding When the Auditor Concludes
That a Material Misstatement Exists in
Other Information Obtained after the Date
of the Auditors Report
A48. If there is a material misstatement in
other information obtained after the date
of the auditors report, and has been
corrected, the auditors procedures should
determine the correction has been made
and may include reviewing the steps taken
by management.
A49. If those charged do not agree to
revise the other information, the auditor
may consider it appropriate to seek legal
advice about the auditors legal rights and
obligations.
A50. When a material misstatement of the
other information remains uncorrected,
appropriate actions that the auditors may
take, for example:
Provide a new or amended
auditors report to management
and request that this new or
amended auditors report to users.
Bringing the material misstatement
to the attention of the users
Communicating with a regulator
about the uncorrected material
misstatement;
Considering the implications for
engagement continuance.
Responding When a Material
Misstatement in the Financial
Statements Exists or the Auditors
Understanding of the Entity and Its
Environment Needs to Be Updated
A51. The auditor may become aware of
new information that has implications for:

Entity and its environment and
may indicate the need to revise the
auditors risk assessment.
Evaluating the effect of identified
misstatements on the audit and of
uncorrected misstatements, if any,
on the financial statements.
Auditors responsibilities relating to
subsequent events.
Reporting
A52. Identification in the auditors report
of other information that the auditor
expects to obtain would be appropriate in
order to provide additional transparency.
Illustrative Statements
A53. Illustrative examples of the Other
Information section of the auditor's report
are included in Appendix 2.
Reporting Implications When the Auditors
Opinion on the Financial Statements Is
Qualified or Adverse
A54. A qualified or adverse auditors
opinion on the financial statements may
not have an impact on the statement if
the matter has been modified is not
included or otherwise addressed in the
other information and the matter does not
affect any part of the other information.
Qualified Opinion Due to a Material
Misstatement in the Financial Statements
A55. When the auditors opinion is
qualified, consideration may be given if
the other information is also materially
misstated giving rise to the qualified
opinion on the financial statements.
need to modify the statement to refer to
the auditors inability to consider
managements description of the matter in
the other information. The auditor is
required to report any other uncorrected
material misstatements of the other
information that have been identified.
Adverse Opinion
A57. An adverse opinion on the financial
statements does not justify the omission
of reporting of material misstatements of
the other information that the auditor has
identified in the auditors report. When an
adverse opinion has been expressed, the
auditor need to appropriately modify the
statement.
Disclaimer of Opinion
A58. When the auditor disclaims an
opinion on the financial statements,
providing further details about the audit,
including a section to address other
information may overshadow the
disclaimer of opinion on the financial
statements as a whole.
Reporting Prescribed by Law or Regulation
A59. Auditor may be required to comply
with legal or regulatory requirements.
Auditor may be obliged to use a specific
layout or wording in the auditors report.
Consistency in the auditors report,
promotes credibility by making more
readily identifiable those audits that have
been conducted in accordance with
globally recognized standards. The
auditors report may refer to International
Standards on Auditing.

Qualified Opinion Due to Limitation of

Scope

A56. When there is a limitation of scope to

the material item in the financial
statements, auditor will not have obtained
sufficient appropriate audit evidence
about that matter. Auditor may be unable
to conclude any material misstatement of
the other information. The auditor may
APPENDIX 1

Examples of Amounts or Other Items that May Be Included in the Other

Information

Amounts
Items in a summary of key financial results, such as net income, earnings per share,
dividends, sales and other operating revenues, and purchases and operating
expenses.
Selected operating data, such as income from continuing operations by major
operating area, or sales by geographical segment or product line.
Special items, such as asset dispositions, litigation provisions, asset impairments, tax
adjustments, environmental remediation provisions, and restructuring and
reorganization expenses.
Liquidity and capital resource information, such as cash, cash equivalents and
marketable securities; dividends; and debt, capital lease and minority interest
obligations.
Capital expenditures by segment or division.
Amounts involved in, and related financial effects of, off-balance sheet arrangements.
Amounts involved in guarantees, contractual obligations, legal or environmental
claims, and other contingencies.
Financial measures or ratios, such as gross margin, return on average capital
employed, return on average shareholders equity, current ratio, interest coverage
ratio and debt ratio. Some of these may be directly reconcilable to the financial
statements.

Other Items
Explanations of critical accounting estimates and related assumptions.
Identification of related parties and descriptions of transactions with them.
Articulation of the entitys policies or approach to manage commodity, foreign
exchange or interest rate risks, such as through the use of forward contracts, interest
rate swaps, or other financial instruments.
Descriptions of the nature of off-balance sheet arrangements.
Descriptions of guarantees, indemnifications, contractual obligations, litigation or
environmental liability cases, and other contingencies, including managements
qualitative assessments of the entitys related exposures.
Descriptions of changes in legal or regulatory requirements, such as new tax or
environmental regulations, that have materially impacted the entitys operations or
fiscal position, or will have a material impact on the entitys future financial
prospects.
Managements qualitative assessments of the impacts of new financial reporting
standards that have come into effect during the period, or will come into effect in the
following period, on the entitys financial results, financial position and cash flows.
General descriptions of the business environment and outlook.
Overview of strategy.
Descriptions of trends in market prices of key commodities or raw materials.
Contrasts of supply, demand and regulatory circumstances between geographic
regions.
Explanations of specific factors influencing the entitys profitability in specific
segments.