Introduction
Other information paragraphs are considered as basic financial or non-financial information – excluding the financial statements or anything else mentioned in the auditor’s report. Other information paragraphs are mainly included in the annual report of an entity.
The purpose of other information is to mainly identify the scope of information as information included in the annual report of a particular entity.
Despite the fact that the Companies Act, 2008, endorses the content of an organization’s yearly fiscal summaries it doesn’t require or address the planning of a yearly report.
The JSE Limited Listings Requirements endorse certain revelations that ought to be remembered for a recorded content yearly report, yet in addition, don’t characterize the yearly report.
An element’s yearly report may incorporate data that has been the topic of an affirmation commitment other than the review of the fiscal reports. ISA 720 (Changed) doesn’t contain a degree exclusion for such data and it is consequently other data inside the extent of ISA 720.
What is not considered other information in audit report?
It’s now clear what is considered other information in an audit report, but what is not considered other information? To start with, regulatory reports and sustainability reports which are in most cases, issued as standalone documents – do not make up any part of the annual report of the entity.
Neither are they a part of the combination of all documents that make up the annual report of the entity. Announcements on SENS which are a part of the press that relate to or are associated with the information that has been audited or reviewed in the past in any audit project – do not form part of the combination of any possible documents that comprise an annual report.
All the information that a listed entity may or may not prepare on a generic voluntary basis for a specific stakeholder grouping in this case, such as analysts, has a different purpose and objective as compare to that of an annual report.
Where such information is most likely presented separately from the annual report, it is not other information within the scope.
Where the other information was possibly obtained at the specific date of the auditor’s report. Identification or analyzing of the other information obtained prior to the date of the auditor’s report.
In respect of other information obtained prior to the date of the auditor’s report, either a statement that clearly specifies that the auditor has nothing to report at the moment or if there is an inaccurate content or any possible uncorrected material misstatement of the other information, it could possibly be a statement that describes the inaccurate content with errors or uncorrected material misstatement of the other information.
Identification and genuine analyzing of the other information expected to be obtained only after the date of the auditor’s report.
Entities other than listed entities: No reporting required in this phase of the process, although the auditor now still has responsibilities and the duty to perform the necessary procedures on the other information and ensure that the process is fully accurate without any defects.
The reporting on ‘Other information’ includes the following aspects: – A statement which clearly describes that management is completely responsible for the other information.
Secondly another statement which is important is – that the audit opinion does not exactly cover the other information and lastly a description of all of the auditor’s responsibilities all relating to reading, considering, analyzing and reporting on the other information.
What can be considered other information paragraph?
Following will be discussed some report and documents in an audit report that can be considered other information paragraph:
As part of the year-end financial reporting process, a company in general has the responsibility of preparing a specific document that contains all the contents of its annual financial statements (the directors’ report, an accurate audit committee report and lastly, a company secretary certificate.
Some audited financial statements and the auditor’s report thereon) and a detailed income statement are also a part of this and this counts as supplemental information.
The document is distributed to the company’s shareholders for the objectives and purposes of the company’s annual general meeting which is considered crucial for a successful running of this process.
Secondly, the directors of any generic non-profit company decide to prepare a report that will possibly be used in a professional and authentic presentation to all the potential donors.
It will also most likely contain all the necessary company’s most recent financial statements and the auditor’s report. This report will be prepared in addition to the official annual financial statements of the respective company.