Which of the following best describes 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 provide an opinion on it.

The auditor has no responsibility for other information.

The auditor should 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

Responsibility = Read & Check for Inconsistencies. No Audit. No Opinion.

Full Answer

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

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

The auditor's responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements.

Common mistakes

Thinking the auditor audits or opines on the Other Information.

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