The completed Summary of ISA 720
ISA 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited
Financial Statements
Scope of this ISA
-
-
Auditor’s responsibilities are not cover Others Information that contains the audit finance
statement; however, auditors are required to read that Others Information because the
creditability of audited financial statement may undermine by material inconsistency.
Others Information include Annual Reports and Others similar.
Objective— Summary of ISA 720
-
Appropriate respond by auditors when Others Information contain Audited Finance
Statements, and there is inconsistency.
Definitions— Summary of ISA 720
-
Others Information: Financial and Non-Financial Information other than Audited Financial
Statements.
Requirements— Summary of ISA 720
The following are the requirement that auditor need to do base on this standard
1)
2)
-
Read others Information:
Read Others Information to identify the material inconsistency
Obtain the Other Information prior to the date of the auditor’s report
Material Inconsistencies:
Determine whether the audited financial statements or the other information needs to be
revised, if there is inconsistency.
If the inconsistency identify prior to audit report— Summary of ISA 720
-
If revisions of financial statements are necessary and management refuses, shall modify the
opinion in the auditor’s report in accordance with ISA 705.
If revisions of others information is necessary and management refuses, shall communicate with
those charge with governance, and if those charge with governance involve, include in Other
Mater paragraph, or withhold the report and withdraw the engagement if possible.
If the inconsistency identify prior to audit report— Summary of ISA 720
-
If revision of financial statement is necessary and management refuses, shall follow the relevant
requirement in ISA 560.
-
If revision of other information is necessary, and management agreed, additional procedure
shall perform if require. If not agreed, shall notify to those charges with governance, and if those
charge of governance is involve, take any other appropriate action.
Material Misstatements of Fact— Summary of ISA 720
-
Apparent material misstatement of fact, the auditor shall discuss the matter with management,
if found.
Request management to consult with qualify third party if require
Notify to those charges with governance if management refuse to make change on the material
of fact found.