Section Reading and Considering the Other Inform - ASA 720 - The Auditor's Responsibilities Relating to Other Information - December 2015 - Reading and Considering the Other Information

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Reading and Considering the Other Information

The auditor shall read the other information and, in doing so shall: (Ref: Para. A23–A24)
1. Consider whether there is a material inconsistency between the other information and the financial report. As the basis for this consideration, the auditor shall, to evaluate their consistency, compare selected amounts or other items in the other information (that are intended to be the same as, to summarise, or to provide greater detail about, the amounts or other items in the financial report) with such amounts or other items in the financial report; and (Ref: Para. A25–A29)
2. Consider whether there is a material inconsistency between the other information and the auditor’s knowledge obtained in the audit, in the context of audit evidence obtained and conclusions reached in the audit. (Ref: Para. A30–A36)
While reading the other information in accordance with paragraph 14 of this Auditing Standard, the auditor shall remain alert for indications that the other information not related to the financial report or the auditor’s knowledge obtained in the audit appears to be materially misstated. (Ref: Para. A24, A37–A38)