PLEASE GIVE AN EXAMPLE FOR THE TERM OTHER INFORMATION IN SA 720
(Managing Corporate Finance)
Replied 31 December 2012
You must have seen Annual Report (booklet) of any public company. For the purpose of SA 720, 'document containing other fin info' means such Annual Report. This is just example. It could be any such other document.
Example of other info :-
Auditor has reported in his Audit Report that company is in crisis and going concern assumption is in doubt. But, Directors in their Directors' Report have stated that company is in good position and in future planning to acquire other businesses etc. etc.
Now, here, contrast is there between Auditor's Report & Directors' Report. This is called 'inconsistency' for purpose of SA 720. Auditor should take care that such contrast should not be there since it will reduce credibility of his report.
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