ASA 720 - Other Information in Documents Containing Audited Financial Reports - April 2006
Availability of Other Information After Availability of Other Information After the Date of the Auditor’s Report
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Availability of Other Information After the Date of the Auditor’s Report
25 When all the other information is not available to the auditor prior to the date of the auditor’s report, the auditor would ordinarily read the other information at the earliest possible opportunity thereafter to identify material inconsistencies.
26 If on reading the other information, the auditor identifies a material inconsistency or becomes aware of an apparent material misstatement of fact, the auditor would ordinarily determine whether the audited financial report or the other information need revision.
27 When revision of the audited financial report is appropriate, the mandatory requirements and explanatory guidance in ASA 560 Subsequent Events, would be followed.
28 When revision of the other information is necessary and the entity agrees to make the revision, the auditor would ordinarily carry out the audit procedures necessary under the circumstances. The audit procedures may include reviewing the steps taken by management to ensure that individuals in receipt of the previously issued financial report, the auditor’s report thereon and the other information, are informed of the revision.
29 When revision to the other information is necessary but management and those charged with governance refuse to make the revision, the auditor shall consider taking further appropriate action.
30 Ordinarily, the actions taken could include such steps as notifying those charged with governance in writing of the auditor’s concern regarding the other information and obtaining legal advice.