(b) (i) Auditor’s responsibilities in relation to other information presented with the financial statements

Assessment of ISA requirements (Max 2) including:

– Auditor must read other information for inconsistency with financial statements or understanding of the business
 – Consider the source of the inconsistency
 (i) A material misstatement of the other information exists;
 (ii) A material misstatement of the financial statements exists; or
 (iii) The auditor’s understanding of the entity and its environment needs to be updated.
 – Auditor does not give opinion on the other information

Matters arising from chairman’s statement
 – Growth discussion ignores discontinued operation
 – Calculations to support the ongoing growth
 – Statement obscures actual growth hence misleading/material misstatement in other information
 – Misstatement of fact regarding recycled paper usage
 – Judgement as to whether it is material misstatement of other information

Maximum marks 5