(i) Auditor’s responsibilities regarding other information

1 mark per comment, ½ mark ref to ISA 720

– Definition/examples of other information
 – Auditor reads to look for material inconsistency
 – Implication if inconsistency in financial statements not resolved (qualification)
 – Implication if inconsistency in other information (Other Matter paragraph)
 – Material misstatements of fact

(ii) Action by Newman & Co

1 mark per comment

– Review audit work on charitable donations
 – Discuss inconsistency with management/those charged with governance
 – If refuse to change the figure, reconsider reliance on management representations
 – Implication for audit report

Max marks 8

Professional marks for presentation (1 mark) and quality of explanation (1 mark) 2