Other information includes non-financial statement data, such as:
Management reports
Financial highlights
Employment or governance data
Capital expenditure plans
This excludes press releases, cover letters, analyst briefings, and website content.
The auditor must:
Read other information for material inconsistencies or misstatements.
Respond if inconsistencies could undermine the credibility of audited financial statements:
If the financial statements require revision, modify the audit opinion if management refuses to act.
If other information requires revision, communicate with governance and consider withholding the audit report, withdrawing from the engagement, or consulting legal counsel.
For nonissuers, the audit report includes a section labeled "Other Information," clarifying the auditor’s limited responsibility. For issuers, the auditor may include an explanatory paragraph disclaiming responsibility for the other information.
Supplementary information includes data outside the basic financial statements, often used for analysis. Examples: pension disclosures, additional schedules.
Assess the presentation of supplementary information relative to the financial statements.
Report on whether it is fairly stated in relation to the financial statements as a whole.
The auditor may issue an opinion on supplementary information if:
It directly relates to the financial statements.
It covers the same period.
The financial statements were audited without adverse or disclaimer opinions.
Supplementary information is presented alongside or readily available with the financial statements.
In addition to standard audit procedures:
Inquire about preparation methods and criteria.
Compare and reconcile the supplementary data to audited financial statements.
Obtain written representations from management.
Include a "Supplementary Information" section in the audit report.
Issue a separate report, referencing the financial statement audit and modifications, if applicable.
Information mandated by standard-setting bodies, often supplementary to basic financial statements.
Apply limited procedures to assess:
Consistency with the financial statements.
Compliance with prescribed guidelines.
Material departures or omissions.
A separate "Required Supplementary Information" section in the auditor's report may disclose:
Whether procedures were performed.
Observed departures or missing information.
A disclaimer of opinion unless explicitly engaged to express one.
When management refuses to revise material misstatements in other or supplementary information:
Modify the opinion or disclaim it (supplementary information).
Communicate with governance.
Consider withdrawal from the engagement or legal consultation.
In the audit of a non issuer, what is an auditor's responsibility for supplementary information, such as the disclosure of pension information, which is outside the basic financial statements but required by the GASB?