What is Other Information (ISA 720)?
ISA 720.14 requires the auditor to read the other information and consider whether there is a material inconsistency between that information and the financial statements. This covers everything in the annual report that sits outside the audited financial statements and the auditor's report: management commentary, governance reports, chairman's statements, sustainability narratives, KPIs, and risk disclosures.
ISA 720.15 extends the scope beyond simple number-matching. The auditor must also consider whether the other information is materially inconsistent with the knowledge obtained during the audit. This means a narrative claim about market share growth, for example, must be assessed against what the auditor learned during revenue testing and industry analysis.
ISA 720.22 is explicit: the auditor does not provide assurance on the other information. The auditor's report includes a separate section describing what was done, but it stops short of an opinion. Despite this, the procedures are mandatory and the consequences of not performing them are real.
Key Points
- ISA 720.14 requires reading all other information and considering material inconsistencies with the financial statements.
- ISA 720.15 extends the check to consistency with knowledge obtained during the audit — not just number-matching.
- No assurance is provided on the other information (ISA 720.22), but the procedures are mandatory.
- Unresolved inconsistencies may require reporting a material misstatement of other information in the auditor's report.
Why it matters in practice
The AFM's 2022 inspection cycle found auditors who had not documented reading the other information at all. The procedure was simply omitted from the file. This is a clear ISA 720.14 failure and results in an automatic finding.
Even where teams perform ISA 720 procedures, they often limit the work to number-matching — checking that the revenue figure in the management report matches the audited income statement. This misses ISA 720.15's broader consistency requirement. A management report that describes "strong organic growth" while the audit file documents that revenue growth came entirely from an acquisition is materially inconsistent with audit knowledge, even if every number ties.
Teams should document both what was read and what was considered. A one-line statement that "the other information was read and no inconsistencies were identified" does not demonstrate that ISA 720.15 was applied. The file should show which specific claims were assessed and against which audit evidence.
Key standard references
- ISA 720.14: Requirement to read other information and consider material inconsistencies with the financial statements.
- ISA 720.15: Requirement to consider consistency with knowledge obtained during the audit.
- ISA 720.22: Reporting section — no assurance is expressed on the other information.
- ISA 720.18–19: Procedures when a material inconsistency or misstatement is identified, including discussion with management and resolution steps.
Related terms
Frequently asked questions
Does the auditor provide assurance on other information?
No. ISA 720.22 is explicit that the auditor does not provide assurance on the other information. The auditor reads it and considers whether it is materially inconsistent with the financial statements or audit knowledge.
What happens if the auditor finds a material inconsistency?
ISA 720.18–19 require the auditor to discuss the matter with management. If unresolved, the auditor considers the implications for the auditor's report. ISA 720.22(e) requires reporting a material misstatement of other information explicitly.