April 2023
Intermediate to advanced
1056 pages
34h 59m
English
AU-C 720 offers auditors guidance on their responsibilities related to other information, financial or nonfinancial, in an entity's annual report. (AU-C 720.01)
Other information may include a report by management or those charged with governance on operations, financial summaries or highlights, employment data, planned capital expenditures, financial ratios, names of officers and directors, and selected quarterly data. (AU-C 720.A13)
Source: AU-C 720.12. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Annual report, Misstatement of the other information, Other information.
AU-C 720.11 states that the objectives of the auditor, having read the other information, are to:
- Consider whether a material inconsistency exists between the other information and the financial statements.
- Remain alert for indications that:
- A material inconsistency exists between the other information and the auditor's knowledge obtained in the audit or
- A material misstatement of fact exists or the other information is otherwise misleading
- Respond ...