ICAI has released the Implementation Guide on ‘Revised SA 720: The Auditor’s Responsibilities Relating to Other Information’, comprising of FAQs on key relevant issues along with illustrative formats of auditors reports on other information, as under:
ICAI’s Implementation Guide on Revised SA 720: The Auditor’s Responsibilities Relating to Other Information
This Implementation Guide of ICAI provides supplementary guidance to Members on ‘Revised SA 720: The Auditor’s Responsibilities Relating to Other Information’.
In view of absence of any separate statutory requirement, the auditor’s opinion does not cover ‘Other Information’ in documents containing audited financial statements and the auditor has no specific responsibility for determining whether or not other information is properly stated except where there exists a regulatory requirement to do so.
However, in case there are material inconsistencies between the audited financial statements and the other information, the credibility of the financial statements would be undermined and thus, it may be considered necessary by the auditor to review the Other Information.
ICAI’s ‘Revised SA 720’, which is applicable to audits of financial statements for periods beginning on or after 01/04/2018, casts a new reporting requirement on the auditors of listed entities and corporate entities to include a separate section on “Other Information” in their audit reports. Revised SA 720 also contains several new requirements regarding auditors’ work effort on other information.