Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Completion and final review

Brightwater Co is a listed company. At the date of the auditor's report, the auditor has obtained all the other information that will be in the annual report. The auditor has read it and found no material misstatements. How should the auditor's report deal with other information under ISA 720 (Revised)?

For a listed entity, the auditor's report must contain an Other Information section that identifies the other information, says no opinion is expressed on it, explains the auditor's responsibilities and states that there is nothing to report. Absence of misstatement does not remove the section.

  1. AOmit any reference to other information because no misstatement was found
  2. BInclude an Other Information section identifying the other information, stating that no opinion is expressed on it, describing the auditor's responsibilities and reporting that there is nothing to reportCorrect
  3. CInclude an opinion that the other information is true and fair
  4. DInclude an Emphasis of Matter paragraph stating the other information is consistent

Explanation

For listed entities, ISA 720 (Revised) requires a separate Other Information section, even where nothing is to report. It must state that no opinion is expressed and describe responsibilities and the outcome. An emphasis of matter is for matters in the financial statements.

Did you get it right without looking?

One question tells you little. A timed set on Completion and final review shows your real accuracy, how long you take and where you lose marks.

Practise Completion and final reviewFree diagnostic mock

More Completion and final review questions