Other Information – Auditor’s Responsibility beyond Financial Statements

INTRODUCTION

As we have evidenced over the years, information included in the Annual Reports of the companies is increasing year after year. Such information is used by users of financial statements for their analysis and decision-making. Therefore, the “Other Information” is a fundamental part of the Annual Report. Such “Other Information” may have also been used as a part of the audit work such as evaluation of going concern assumption, various transactions reported in CARO related to loans, etc. For example, CARO requires auditors to report on loans granted by the company. Such information shall also form a part of the Board’s report which is Other Information included in the Annual Report. Similarly, there could be legal or regulatory matters discussed in Other Information which may be part of key audit matters in the auditor’s report.

The audit report includes a section titled “Other Information”. This section describes the management’s and auditor’s responsibilities relating to Other Information and the outcome of the audit procedures carried out on such Other Information. Standard on Auditing (SA) 720 (Revised) – The Auditor’s Responsibilities Relating to Other Information describes the reporting responsibilities on such Other Information by the aud