What is other information under ISA 720 ?
Every busy season, someone on the team asks the same question: do we actually have to read the chairman's statement? The answer is yes. ISA 720.14 requires auditors to read everything in the annual report that sits outside the audited financial statements (FS) and the auditor's report, then consider whether any of it is materially inconsistent with the FS. That includes management commentary, governance reports, sustainability narratives, chairman's statements, KPIs, and risk disclosures.
ISA 720.15 extends the scope beyond simple number-matching. Auditors must also consider whether the other information is materially inconsistent with knowledge obtained during the audit. A narrative claim about market share growth, for example, must be assessed against what we learned during revenue testing and industry analysis.
ISA 720.22 makes one thing clear: 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. The procedures are mandatory all the same, and the consequences of skipping them are real.
Key Points
- ISA 720.14 requires reading all other information and considering material inconsistencies with the FS.
- 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
In the AFM's 2022 inspection cycle, auditors 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.
Nobody enjoys reading a 40-page annual report at the end of a busy season, but skipping it is how files get flagged. Even where teams perform ISA 720 procedures, in our experience they 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.
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 tell a story: which specific claims were assessed, and against which audit evidence.
Key standard references
- ISA 720.14 requires auditors to read other information and consider material inconsistencies with the FS.
- ISA 720.15 requires auditors to consider consistency with knowledge obtained during the audit.
- ISA 720.22 covers reporting. No assurance is expressed on the other information.
- ISA 720.18 –19 set out procedures when a material inconsistency or misstatement is identified, including discussion with management and resolution steps.
Related terms
Related reading
Frequently asked questions
Does the auditor provide assurance on other information?
No. ISA 720.22 states 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.