Misstatement of other information
A misstatement of other information occurs when information in an annual report outside the audited financial statements and auditor’s report is incorrectly stated or otherwise misleading, including when it conflicts with the statements or the auditor’s knowledge. The auditor investigates apparent material issues under the applicable standard.
Worked example
The annual report states that borrowings fell, while the audited statements show a substantial increase; the auditor investigates whether the narrative is wrong.
Common mistake
Do not assume a material misstatement in other information automatically requires the same modification as a misstatement in the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |