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sir is it that it is not mandatory for the external auditors to audit the “other information”?
and i mean if this is so then the management would deliberately try to issue other information after auditors report is ready, and hence get the other information published without it being audited.
this increases the chances of management bias and manipulation in other information that it presents tot eh shareshoflders. and which the naive shareholders might take for as “audited other information”
See the bottom of page 27 (search “other information” in the pdf) – only the financial statements are audited – NOT any other information published in an annual report.
I think it goes beyond the scope of the AA exam for you to know but where other info is required to be published (e.g. a directors’ report, chairman’s statement or some management review) it must be read by the auditor BEFORE the auditor signs the auditor’s report. The auditor’s responsibility is to ensure that the credibility of the financial statements (and the audit opinion) is not undermined by inconsistencies between the other information and the financial statements. So the chairman’s statement cannot say “the company has had a terrific year/profits have doubled …. ” when that is not the case.
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