ISA 720 (1)

Question 1

What is meant by other information?

Answer 1

Financial or non-financial information (other than FSs and auditor’s report) included in an entity’s annual report

Question 2

What is an annual report?

Answer 2

A document, or combination of documents, prepared typically on an annual basis by management or those charged with governance in accordance with law, regulation or custom

Question 3

What is the purpose of the annual report?

Answer 3

To provide owners with information on entity’s operations and entity’s financial results and financial position as set out in the FSs

Question 4

When does a misstatement of other information exist?

Answer 4

When other information is incorrectly stated or otherwise misleading

Question 5

What causes a misstatement of other information?

Answer 5

As it omits or obscures information necessary for a proper understanding of a matter disclosed in the other information

Question 6

What is the objective of the auditor for ISA 720?

Answer 6

Respond appropriately when documents containing audited FSs include other information that could undermine credibility of FSs and auditor’s report

Question 7

Examples of other amounts/items that may be included as other information (strategy)

Answer 7

Overview of strategy

Question 8

Examples of other amounts/items that may be included as other information (highlights)

Answer 8

Financial summaries or highlights

Question 9

Examples of other amounts/items that may be included as other information (expenditure)

Answer 9

Planned capital expenditures

Question 10

Examples of other amounts/items that may be included as other information (ratio)

Answer 10

Financial ratios

Question 11

Examples of other amounts/items that may be included as other information (estimate)

Answer 11

Explanations of critical accounting estimates and related assumptions