United States

Auditor responsibilities for other information in annual reports


The Auditing Standards Board (ASB) has a strategic objective of converging its standards with those of the International Auditing and Assurance Standards Board. Accordingly, the ASB used International Standard on Auditing 720 (Revised), The Auditor’s Responsibilities Relating to Other Information, as the basis for recently released Statement on Auditing Standards (SAS) 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports. This SAS supersedes AU-C section 720, Other Information in Documents Containing Audited Financial Statements, and results in the following changes, among others, to that standard:

  • Clarification of the documents that are within the scope of the standard by defining annual report
  • The addition of a requirement for the auditor to determine, through discussion with management, and obtain management’s written acknowledgment regarding, which document or documents comprise the annual report
  • Clarification and expansion of the auditor’s responsibilities with respect to other information
  • The addition of a requirement that, when the auditor has obtained all the other information, the auditor should reference in a separate section of the auditor’s report on the financial statements:
    • Identification of the other information
    • Management’s responsibility for the other information
    • The auditor’s responsibilities related to the other information
    • Information regarding uncorrected misstatements of the other information

SAS 137 will be effective for audits of financial statements for periods ending on or after December 15, 2020.