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Hi Mike,
This is in extension of the last post I made. Thank you for all the help btw.You wrote about ‘other matter’ in your reply but isn’t that a different paragraph in the audit report. Or am I wrong? Because my understanding was that Other info. has its own paragraph and its related to Other info docs like chairman st. and directors reports and other matter has a separate paragraph which is related to Comparatives and corresponding figures…
link to last post
https://opentuition.com/topic/other-info-3/I don’t see any distinction drawn between “other matters” and “other information”
Do you?
The extracts below and from the IFAC document that covers this area
Definitions
For purposes of the ISAs the following terms have the meanings attributed below:
(a) Other information – Financial and non-financial information (other than the financial statements and the auditor’s report thereon) which is included, either by law, regulation or custom, in a document containing audited financial statements and the auditor’s report thereon.
(b) Inconsistency – Other information that contradicts information contained in the audited financial statements. A material inconsistency may raise doubt about the audit conclusions drawn from audit evidence previously obtained and, possibly, about the basis for the auditor’s opinion on the financial statements.
(c) Misstatement of fact – Other information that is unrelated to matters appearing in the audited financial statements that is incorrectly stated or presented. A material misstatement of fact may undermine the credibility of the document containing audited financial statements.
Material Inconsistencies
If, on reading the other information, the auditor identifies a material inconsistency, the auditor shall determine whether the audited financial statements or the other information needs to be revised.
Material Inconsistencies Identified in Other Information Obtained Prior to the Date of the Auditor’s Report
If revision of the audited financial statements is necessary and management refuses to make the revision, the auditor shall modify the opinion in the auditor’s report in accordance with ISA 705.2
If revision of the other information is necessary and management refuses to make the revision, the auditor shall communicate this matter to those charged with governance, unless all of those charged with governance are involved in managing the entity; and
(a) Include in the auditor’s report an Other Matter paragraph describing the material inconsistency in accordance with ISA 706;4
(b) Withhold the auditor’s report; or
(c) Withdraw from the engagement, where withdrawal is possible under applicable law or regulation. (Ref: Para. A6–A7)
Material Inconsistencies Identified in Other Information Obtained Subsequent to the Date of the Auditor’s Report
If revision of the audited financial statements is necessary, the auditor shall follow the relevant requirements in ISA 560.5
If revision of the other information is necessary and management agrees to make the revision, the auditor shall carry out the procedures necessary under the circumstances. (Ref: Para. A8)
If revision of the other information is necessary, but management refuses to make the revision, the auditor shall notify those charged with governance, unless all of those charged with governance are involved in managing the entity, of the auditor’s concern regarding the other information and take any further appropriate action. (Ref: Para. A9)
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