The auditor's responsibilities relating to other information
FINANCIAL REPORTING INSIGHTS |
The International Auditing and Assurance Standards Board recently issued International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information, to enhance the auditor’s responsibilities relating to other information. Other information is defined by the revised standard as financial or nonfinancial information (other than financial statements and the auditor’s report thereon) included in an entity’s annual report. ISA 720 also includes new requirements related to auditor reporting on other information. The new standard is effective for audits conducted in accordance with ISA for periods ending on or after December 15, 2016.
On August 13, 2013, the Public Company Accounting Oversight Board (PCAOB) issued a proposed auditing standard related to the auditor’s reporting model, including the auditor’s responsibilities for other information. The PCAOB anticipates issuing a revised exposure draft in the third quarter of 2015.
We expect that the Auditing Standards Board will consider modifications to AU-C 720, Other Information in Documents Containing Audited Financial Statements, to align with ISA 720 and PCAOB standards, once the PCAOB standard is finalized.