ISA 720 (REDRAFTED) THE AUDITOR’S RESPONSIBILITIES RELATING TO OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS
ISA 720 (redrafted) deals with the auditor’s responsibilities relating to other information in documents which contain audited financial statements. For the purposes of this standard, a document containing audited financial statements refers to annual reports (or similar docu-ments), that are issued to owners and other similar stakeholders, which contain audited financial statements and the auditor’s report.
ISA 720 contains definitions as follows:
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.
Other information that contradicts information contained in the audited financial statements. A material inconsistency may raise doubt about the audit conclusions drawn from the audit evidence previously obtained and, possibly, about the basis for the auditor’s opinion on the financial statements.
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.
In some ...