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Definitions
Supplementary information
Supplementary information is information that provides further explanation of specific items in the annual accounts, and is normally presented as supplementary schedules or additional notes. If, because of its nature and presentation, it cannot be clearly differentiated from the audited annual accounts, it is considered an integral part thereof and, accordingly, is covered by the auditor’s opinion.
If, however, supplementary information is not an integral part of the annual accounts and is not intended to be covered by the [link title="auditor's%20opinion" link="%2Faware%2FFA%2FPages%2FReporting%2FForming-an-opinion-in-financial-audit.aspx" /]
, the auditor should evaluate whether it is clearly differentiated from the audited annual accounts.
Other information
Other information is other financial or non-financial information, which is included in a document containing audited annual accounts (e.g. principal events and key points).
Instructions
Read to identify inconsistencies
The auditor should read supplementary information not subject to audit and other information so as to identify material inconsistencies with the audited annual accounts and misstatements of fact, which may undermine the credibility of the annual accounts.
If amendment necessary to annual accounts
If, on reading such supplementary and other information, the auditor identifies a material inconsistency, (s)he should determine whether the audited annual accounts or the other information needs to be amended. If an amendment to the audited annual accounts is necessary and the entity refuses to make the amendment, the auditor should express either a [link title="qualified%20or%20adverse%20opinion" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FModified-opinion.aspx" /]
on those annual accounts. If an amendment to the other information is necessary and the entity refuses to make the amendment, the auditor should either include in the [link title="Statement%20of%20Assurance" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FStatement-of-Assurance.aspx" /]
in the [link title="Other%20matter(s)" link="%2Faware%2FGAP%2FPages%2FCA-FA%2FReporting%2FEmphasis-of-matter-and-other-matter.aspx" /]
paragraph describing the material inconsistency or take other appropriate action.
Misstatement of fact
If the auditor becomes aware of a misstatement of fact in such supplementary and other information, the auditor should discuss the matter with the entity’s management. If the auditor concludes that there is a misstatement of fact in such supplementary or other information which management refuses to correct, the auditor should consider reporting the matter to the [a-glossary term="Discharge%20authority"]discharge authority[/a-glossary]
.
Resources
Example of Other information paragraph can be found in the ECA's
[link new-window title="2015%20annual%20report" link="https%3A%2F%2Fwww.eca.europa.eu%2Flists%2Fecadocuments%2Fannualreports-2015%2Fannualreports-2015-en.pdf%23page%3D14" icon="external-link" /]
.
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[standards]
[link new-window title="ISA%20720" link="https%3a%2f%2fwww.ifac.org%2fsystem%2ffiles%2fpublications%2ffiles%2fIAASB-2020-Handbook-Volume-1.pdf%23INTERNATIONAL%2520STANDARD%2520ON%2520AUDITING%2520720%2520(REVISED)" /]
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