ACCA AAA ^INT Syllabus E. Completion, Review and Reporting - Other Information - Notes ^{5 / 5}

Well, annual reports now have way more narrative info - with things such as:

1. The entity’s business model

2. Risks they face and

3. Uncertainties

And users like it - as it helps them understand the more complex areas in the financial statements

There’s more documents other than the annual report such as management reports, or statements on corporate governance / internal control and risk assessment

Sp the IAASB wanted:
Greater consistency regarding auditors’ consideration of other information;
Enhanced responsibilities regarding other information; and
Auditors to state their responsibilities (re other info) in their reports

What are the main changes in relation to the scope and auditor’s work effort?

The scope of other information

• Other information is anything in the annual report (except for the FS and auditors report)

Other information is anything in the annual report (except for the FS and auditors report)

The auditor must read the other information and see if:

1. There’s a material inconsistency between the other information and the FS; and

2. There’s a material inconsistency between the other information and the auditor’s knowledge

3. The auditor must  also remain alert for indications that the other information appears to be materially misstated, regardless if obtained prior to or after the date of the auditor’s report

The auditor’s report will always include a separate Other Information section

It will include:

1. Identification of the other information obtained

2. A statement that the auditor’s opinion does not cover the other information

3. A description of the auditor’s responsibilities relating to reading, considering and reporting on other information

4. When other information has been obtained prior to the date of the auditor’s report, either :

   A statement that the auditor has nothing to report; or
   A statement that describes the uncorrected material misstatement