Which of the following statements is CORRECT regarding the auditor's responsibility for 'Other Information' included in the annual report containing the audited financial statements?

Answer options:

The auditor must audit the other information and express an opinion on it.

The auditor has no responsibility for other information.

The auditor must read the other information to identify material inconsistencies with the audited financial statements.

The auditor must obtain a representation letter specifically for the other information.

How to approach this question

Other Information (OI) = Read for inconsistencies. Supplementary Information (RSI) = Perform limited procedures. Financials = Audit.

Full Answer

C.The auditor must read the other information to identify material inconsistencies with the audited financial statements.✓ Correct

The auditor must read the other information to identify material inconsistencies with the audited financial statements.

The auditor's responsibility for Other Information is limited to reading it to identify material inconsistencies with the audited financial statements or material misstatements of fact.

Common mistakes

Thinking the auditor audits or opines on the Annual Report text.

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