CTHIn ForceLegislation
ASA 720 - The Auditor's Responsibilities Relating to Other Information - December 2015
Responding When a Material InconsistencyResponding When a Material Inconsistency Appears to Exist or Other Information Appears to Be Materially Misstated
Start here
Get a plain-English read of Responding When a Material Inconsistency
Turn the raw legal text into a practical explanation grounded in ASA 720 - The Auditor's Responsibilities Relating to Other Information - December 2015.
Responding When a Material Inconsistency Appears to Exist or Other Information Appears to Be Materially Misstated
- If the auditor identifies that a material inconsistency appears to exist (or becomes aware that the other information appears to be materially misstated), the auditor shall discuss the matter with management and, if necessary, perform other procedures to conclude whether: (Ref: Para. A39–A43)
- A material misstatement of the other information exists;
- A material misstatement of the financial report exists; or
- The auditor’s understanding of the entity and its environment needs to be updated.