Other info.

Not Mike, but will give it a go anyways.

You said: “With Other info.the opinion is always unmodified right?”

Yes but not exactly. let me explain. Auditor’s responsibility regarding Other info. is to read it to find any material inconsistencies with financial statements. So if auditor finds any material inconsistency and other info. needs to be amended but management refuses to make changes to other info. auditor should report to those charged with governance. If auditors have reasons to believe that those charged with governance are also involved then as per ISA 720 they can:

a) include an other matters paragraph in auditors report highlighting the material inconsistencies;

b) with hold audit report; or

c) Withdraw from engagement as a last resort (if possible under law and regulations)

Mohsin, please stop answering questions in this forum!

Samin, you ask “With Other info.the opinion is always unmodified right?”

Strictly, the answer is “No” It is certainly possible to have an audit modified opinion as well as an “other matters” paragraph

It’s just that the other matter would not normally affect the audit opinion but that opinion could be modified for some other unrelated matter

Mohsin has quoted to you the matter of “material inconsistencies” but has not also mentioned “misleading statements” within the context of other information.

When reviewing the annual accounts of a client, the auditor should be looking not only for inconsistencies but also for misleading statements

Further more, where a matter in other information is inconsistent with some figure or text within the financial statements, that necessarily means that either the other information is incorrect or that the financial statements are incorrect and that’s a matter that the auditor needs to establish because …

… if it’s the financial statements that are incorrect and the other information is correct, then further audit work is clearly required

OK?