HKSA 720 - Auditors Responsibilities Relating to Other Information

1. INTRODUCTION AND SCOPE

HKSA 720 (Revised) deals with the auditor's responsibilities relating to other information, whether financial or non-financial information (other than financial statements and the auditor's report thereon), included in an entity's annual report.

Key Scope Parameters:

• Applies to information included in an entity's annual report
• An entity's annual report may be a single document or a combination of documents serving the same purpose
• Written in the context of an audit of financial statements by an independent auditor
• The auditor's opinion on the financial statements does NOT cover the other information
• This HKSA does NOT require the auditor to obtain audit evidence beyond that required to form an opinion on the financial statements

Purpose of the Standard:

The auditor is required to read and consider the other information because:

• Other information materially inconsistent with the financial statements or the auditor's knowledge obtained in the audit may indicate a material misstatement of the financial statements
• A material misstatement of the other information may exist
• Either situation may undermine the credibility of the financial statements and the auditor's report
• Such material misstatements may inappropriately influence the economic decisions of users

Ethical Considerations:

This HKSA assists the auditor in complying with relevant ethical requirements that require the auditor to avoid being knowingly associated with information that the auditor believes contains:

• A materially false or misleading statement
• Statements or information provided recklessly
• Omissions or obscuring of required information where such omission or obscurity would be misleading

What Other Information May Include:

• Amounts or other items intended to be the same as, to summarize, or to provide greater detail about amounts or other items in the financial statements
• Other amounts or other items about which the auditor has obtained knowledge in the audit
• Other matters

Timing of Application:

The auditor's responsibilities relating to other information apply regardless of whether the other information is obtained by the auditor prior to, or after, the date of the auditor's report.

Exclusions from Scope:

This HKSA does NOT apply to:

(a) Preliminary announcements of financial information

(b) Securities offering documents, including prospectuses

Nature of Responsibilities:

The auditor's responsibilities under this HKSA:

• Do NOT constitute an assurance engagement on other information
• Do NOT impose an obligation on the auditor to obtain assurance about the other information

Effective Date:

This HKSA is effective for audits of financial statements for periods ending on or after 15 December 2016.

2. OBJECTIVES

The objectives of the auditor, having read the other information, are:

(a) To consider whether there is a material inconsistency between the other information and the financial statements

(b) To consider whether there is a material inconsistency between the other information and the auditor's knowledge obtained in the audit

(c) To respond appropriately when the auditor identifies that such material inconsistencies appear to exist, or when the auditor otherwise becomes aware that other information appears to be materially misstated

(d) To report in accordance with this HKSA

3. DEFINITIONS

Annual Report (Paragraph 12(a)):

A document, or combination of documents, prepared typically on an annual basis by management or those charged with governance in accordance with law, regulation or custom, the purpose of which is to provide owners (or similar stakeholders) with information on the entity's operations and the entity's financial results and financial position as set out in the financial statements.

An annual report contains or accompanies the financial statements and the auditor's report thereon and usually includes information about:

• The entity's developments
• Its future outlook and risks and uncertainties
• A statement by the entity's governing body
• Reports covering governance matters

Misstatement of the Other Information (Paragraph 12(b)):

A misstatement of the other information exists when the other information is incorrectly stated or otherwise misleading (including because it omits or obscures information necessary for a proper understanding of a matter disclosed in the other information).

Other Information (Paragraph 12(c)):

Financial or non-financial information (other than financial statements and the auditor's report thereon) included in an entity's annual report.

4. REQUIREMENTS - DETAILED ANALYSIS

4.1 Obtaining the Other Information (Paragraph 13)

The auditor shall:

(a) Determine, through discussion with management:

• Which document(s) comprises the annual report
• The entity's planned manner and timing of the issuance of such document(s)

(b) Make appropriate arrangements with management to obtain in a timely manner and, if possible, prior to the date of the auditor's report:

• The final version of the document(s) comprising the annual report

(c) When some or all of the document(s) determined in (a) will not be available until after the date of the auditor's report:

• Request management to provide a written representation that the final version of the document(s) will be provided to the auditor when available, and prior to its issuance by the entity, such that the auditor can complete the procedures required by this HKSA

4.2 Reading and Considering the Other Information (Paragraphs 14-15)

Paragraph 14 - Reading and Considering:

The auditor shall read the other information and, in doing so shall:

(a) Consider whether there is a material inconsistency between the other information and the financial statements:

As the basis for this consideration, the auditor shall, to evaluate their consistency, compare selected amounts or other items in the other information (that are intended to be the same as, to summarize, or to provide greater detail about, the amounts or other items in the financial statements) with such amounts or other items in the financial statements.

(b) Consider whether there is a material inconsistency between the other information and the auditor's knowledge obtained in the audit:

This is done in the context of audit evidence obtained and conclusions reached in the audit.

Paragraph 15 - Alertness for Other Indications:

While reading the other information in accordance with paragraph 14, the auditor shall remain alert for indications that the other information not related to the financial statements or the auditor's knowledge obtained in the audit appears to be materially misstated.

4.3 Responding When a Material Inconsistency Appears to Exist (Paragraph 16)

If the auditor identifies that a material inconsistency appears to exist (or becomes aware that the other information appears to be materially misstated), the auditor shall:

• Discuss the matter with management
• If necessary, perform other procedures to conclude whether:

(a) A material misstatement of the other information exists

(b) A material misstatement of the financial statements exists

(c) The auditor's understanding of the entity and its environment needs to be updated

4.4 Responding When the Auditor Concludes That a Material Misstatement of the Other Information Exists (Paragraphs 17-19)

Paragraph 17 - Request Management to Correct:

If the auditor concludes that a material misstatement of the other information exists, the auditor shall request management to correct the other information.

If management:

(a) Agrees to make the correction → the auditor shall determine that the correction has been made

(b) Refuses to make the correction → the auditor shall communicate the matter with those charged with governance and request that the correction be made

Paragraph 18 - Other Information Obtained Prior to Date of Auditor's Report:

If the auditor concludes that a material misstatement exists in other information obtained prior to the date of the auditor's report, and the other information is not corrected after communicating with those charged with governance, the auditor shall take appropriate action, including:

(a) Considering the implications for the auditor's report and communicating with those charged with governance about how the auditor plans to address the material misstatement in the auditor's report (see paragraph 22(e)(ii))

(b) Withdrawing from the engagement, where withdrawal is possible under applicable law or regulation

Paragraph 19 - Other Information Obtained After the Date of Auditor's Report:

If the auditor concludes that a material misstatement exists in other information obtained after the date of the auditor's report, the auditor shall:

(a) If the other information is corrected → perform the procedures necessary in the circumstances

(b) If the other information is not corrected after communicating with those charged with governance → take appropriate action considering the auditor's legal rights and obligations, to seek to have the uncorrected material misstatement appropriately brought to the attention of users for whom the auditor's report is prepared

4.5 Responding When a Material Misstatement in the Financial Statements Exists (Paragraph 20)

If, as a result of performing the procedures in paragraphs 14-15, the auditor concludes that:

• A material misstatement in the financial statements exists, OR
• The auditor's understanding of the entity and its environment needs to be updated

→ The auditor shall respond appropriately in accordance with the other HKSAs.

4.6 Reporting (Paragraphs 21-24)

Paragraph 21 - When to Include "Other Information" Section:

The auditor's report shall include a separate section with a heading "Other Information", or other appropriate heading, when, at the date of the auditor's report:

(a) For an audit of financial statements of a listed entity → the auditor has obtained, or expects to obtain, the other information

(b) For an audit of financial statements of an entity other than a listed entity → the auditor has obtained some or all of the other information

Paragraph 22 - Content of "Other Information" Section:

When the auditor's report is required to include an Other Information section, this section shall include:

(a) A statement that management is responsible for the other information

(b) An identification of:

(i) Other information, if any, obtained by the auditor prior to the date of the auditor's report

(ii) For an audit of financial statements of a listed entity, other information, if any, expected to be obtained after the date of the auditor's report

(c) A statement that the auditor's opinion does not cover the other information and, accordingly, that the auditor does not express (or will not express) an audit opinion or any form of assurance conclusion thereon

(d) A description of the auditor's responsibilities relating to reading, considering and reporting on other information as required by this HKSA

(e) When other information has been obtained prior to the date of the auditor's report, either:

(i) A statement that the auditor has nothing to report

(ii) If the auditor has concluded that there is an uncorrected material misstatement of the other information, a statement that describes the uncorrected material misstatement of the other information

Paragraph 23 - Modified Opinions:

When the auditor expresses a qualified or adverse opinion in accordance with HKSA 705 (Revised), the auditor shall consider the implications of the matter giving rise to the modification of opinion for the statement required in paragraph 22(e).

Paragraph 24 - Reporting Prescribed by Law or Regulation:

If the auditor is required by law or regulation of a specific jurisdiction to refer to the other information in the auditor's report using a specific layout or wording, the auditor's report shall refer to Hong Kong Standards on Auditing only if the auditor's report includes, at a minimum:

(a) Identification of the other information obtained by the auditor prior to the date of the auditor's report

(b) A description of the auditor's responsibilities with respect to the other information

(c) An explicit statement addressing the outcome of the auditor's work for this purpose

4.7 Documentation (Paragraph 25)

In addressing the requirements of HKSA 230 as it applies to this HKSA, the auditor shall include in the audit documentation:

(a) Documentation of the procedures performed under this HKSA

(b) The final version of the other information on which the auditor has performed the work required under this HKSA

5. APPLICATION AND OTHER EXPLANATORY MATERIAL - DETAILED ANALYSIS

5.1 Definitions - Annual Report (Ref: Para. 12(a), A1-A5)

Content and Name Variations:

• Law, regulation or custom may define the content of an annual report and its name
• Content and name may vary within a jurisdiction and from one jurisdiction to another

Period Coverage:

• Typically prepared on an annual basis
• When financial statements are prepared for a period less than or more than a year, an annual report may also be prepared covering the same period

Single vs. Multiple Documents:

• May be a single document referred to as "annual report" or another title
• May be two or more separate documents that in combination serve the same purpose

Examples of Documents That May Form Part of the Annual Report:

• Management report, management commentary, or operating and financial review
• Chairman's statement
• Corporate governance statement
• Internal control and risk assessment reports

Form of Availability:

• May be made available in printed form or electronically (including on the entity's website)
• A document meets the definition regardless of the manner in which it is made available

Documents NOT Typically Part of Annual Report:

• Separate industry or regulatory reports (e.g., capital adequacy reports)
• Corporate social responsibility reports
• Sustainability reports
• Diversity and equal opportunity reports
• Product responsibility reports
• Labor practices and working conditions reports
• Human rights reports

5.2 Definitions - Misstatement of the Other Information (Ref: Para. 12(b), A6-A7)

Omission or Obscuring Information:

When a particular matter is disclosed in the other information, the other information may omit or obscure information necessary for a proper understanding of that matter.

Example:

If the other information purports to address the key performance indicators used by management, omission of a key performance indicator used by management could indicate that the other information is misleading.

Materiality Considerations:

• The concept of materiality may be discussed in a framework applicable to the other information
• If no applicable framework exists, the following characteristics provide a frame of reference:
• Materiality is considered in the context of the common information needs of users as a group
• Users of the other information are expected to be the same as users of the financial statements
• Judgments about materiality take into account the specific circumstances of the misstatement
• Judgments about materiality involve both qualitative and quantitative considerations

5.3 Definitions - Other Information (Ref: Para. 12(c), A8-A10)

Examples of Amounts or Other Items (Appendix 1):

*Amounts:*

• Items in a summary of key financial results (net income, EPS, dividends, sales, etc.)
• Selected operating data (income by operating area, sales by segment)
• Special items (asset dispositions, litigation provisions, asset impairments)
• Liquidity and capital resource information
• Capital expenditures by segment or division
• Amounts involved in off-balance sheet arrangements
• Amounts involved in guarantees, contractual obligations, legal claims
• Financial measures or ratios (gross margin, return on capital, current ratio)

*Other Items:*

• Explanations of critical accounting estimates and related assumptions
• Identification of related parties and descriptions of transactions
• Articulation of policies to manage commodity, foreign exchange or interest rate risks
• Descriptions of off-balance sheet arrangements
• Descriptions of guarantees, indemnifications, contractual obligations
• Descriptions of changes in legal or regulatory requirements
• Management's qualitative assessments of impacts of new financial reporting standards
• General descriptions of business environment and outlook
• Overview of strategy
• Descriptions of trends in market prices
• Explanations of specific factors influencing profitability

Disclosures Located Outside Financial Statements:

• If the applicable financial reporting framework permits specific disclosures to be located outside the financial statements, such disclosures form part of the financial statements
• They do NOT constitute other information for the purpose of this HKSA

XBRL Tags:

• eXtensible Business Reporting Language (XBRL) tags do NOT represent other information as defined in this HKSA

5.4 Obtaining the Other Information (Ref: Para. 13, A11-A22)

Determining the Annual Report:

• Often clear based on law, regulation or custom
• In some cases, timing and purpose of documents are relevant to the determination

Translation and Multiple Jurisdictions:

• When annual report is translated into other languages pursuant to law or regulation
• When multiple "annual reports" are prepared under different legislation
• Local law or regulation may provide further guidance

Communications with Management or Those Charged with Governance:

The auditor may communicate:

• Expectations regarding obtaining the final version of the annual report in a timely manner
• Possible implications when other information is obtained after the date of the auditor's report

When Communications May Be Particularly Appropriate:

• In an initial audit engagement
• When there has been a change in management or those charged with governance
• When other information is expected to be obtained after the date of the auditor's report

Approval by Those Charged with Governance:

Where those charged with governance are to approve the other information prior to its issuance, the final version is the one that has been approved by those charged with governance for issuance.

Timing of Release:

• Some annual reports are released shortly after the financial reporting period
• Others may not be required to be released until a later time
• Some annual reports are a combination of documents with different release timing

Documents Under Development:

If at the date of the auditor's report, the entity is considering developing a document that may be part of the annual report but management cannot confirm its purpose or timing, such document is NOT considered other information for purposes of this HKSA.

Website Availability:

• When other information is only made available via the entity's website, the version obtained from the entity (not directly from the website) is the relevant document
• The auditor has NO responsibility to search for other information on the entity's website
• The auditor has NO responsibility to confirm that other information is appropriately displayed on the entity's website

Dating the Auditor's Report:

The auditor is NOT precluded from dating or issuing the auditor's report if the auditor has not obtained some or all of the other information.

Subsequent Events:

When other information is obtained after the date of the auditor's report, the auditor is NOT required to update the procedures performed in accordance with paragraphs 6 and 7 of HKSA 560.

Written Representations:

The written representation required by paragraph 13(c) regarding other information that will be available only after the date of the auditor's report is intended to support the auditor's ability to complete the procedures required by this HKSA.

Additional written representations the auditor may find useful:

• Management has informed the auditor of all documents that may comprise other information
• The financial statements and any other information obtained prior to the date of the auditor's report are consistent with one another
• The other information does not contain any material misstatements
• With regard to other information not yet obtained, management intends to prepare and issue such other information and the expected timing

5.5 Reading and Considering the Other Information (Ref: Para. 14-15, A23-A38)

Professional Skepticism:

The auditor is required by HKSA 200 to plan and perform the audit with professional skepticism. This includes:

• Recognizing that management may be overly optimistic about the success of its plans
• Being alert to information that may be inconsistent with the financial statements or the auditor's knowledge obtained in the audit

Engagement Team Considerations (HKSA 220 (Revised)):

Factors for determining appropriate engagement team members:

• Relative experience of engagement team members
• Whether team members have relevant knowledge obtained in the audit
• The degree of judgment involved
• Whether, in a group audit, it is necessary to make inquiries of a component auditor

Considering Material Inconsistency with Financial Statements (Ref: Para. 14(a), A25-A29):

*Examples of Amounts or Other Items:*

• Tables, charts or graphs containing extracts of the financial statements
• A disclosure providing greater detail about a balance or account shown in the financial statements
• Descriptions of financial results

*Extent of Comparison:*

The auditor is NOT required to compare all amounts or other items in the other information with the financial statements.

*Selection Factors (Professional Judgment):*

• The significance of the amount or other item in the context in which it is presented
• The relative size of the amount compared with accounts or items in the financial statements
• The sensitivity of the particular amount or other item

*Examples of Procedures:*

• For information intended to be the same → compare to the financial statements
• For information intended to convey the same meaning → compare words used and consider significance of differences
• Obtain a reconciliation from management and:
• Compare items in the reconciliation to the financial statements and other information
• Check whether calculations are arithmetically accurate

*Presentation Consistency:*

Evaluating consistency includes, when relevant, the manner of presentation compared to the financial statements.

Considering Material Inconsistency with Auditor's Knowledge (Ref: Para. 14(b), A30-A36):

*Examples of Amounts or Items:*

• A disclosure of units produced or a table summarizing production by geographical region
• A statement that "The company introduced product X and product Y during the year"
• A summary of the locations of the entity's major operations

*Auditor's Knowledge Obtained in the Audit Includes:*

• Understanding of the entity and its environment (HKSA 315 (Revised 2019))
• Understanding of the applicable financial reporting framework
• Understanding of the entity's system of internal control
• Matters that are prospective in nature (e.g., business prospects, future cash flows)

*Sufficiency of Recollection:*

• For many matters, the auditor's recollection of audit evidence obtained and conclusions reached may be sufficient
• The more experienced and familiar with key aspects of the audit, the more likely recollection will be sufficient

*Reference to Audit Documentation:*

The auditor may determine that referring to relevant audit documentation or making inquiries of relevant engagement team members or component auditors is appropriate.

Remaining Alert for Other Indications (Ref: Para. 15, A37-A38):

*Matters Beyond Auditor's Knowledge:*

Other information may include discussion of matters not related to the financial statements and may extend beyond the auditor's knowledge obtained in the audit (e.g., statements about greenhouse gas emissions).

*Purpose of Alertness:*

Assists the auditor in complying with ethical requirements to avoid being knowingly associated with other information that the auditor believes contains:

• A materially false or misleading statement
• A statement provided recklessly
• Omissions or obscuring of necessary information

*Potential Identifications:*

• Differences between the other information and the general knowledge of the engagement team member
• An internal inconsistency in the other information

5.6 Responding When a Material Inconsistency Appears to Exist (Ref: Para. 16, A39-A43)

Discussion with Management:

• May include requesting management to provide support for the basis of management's statements
• Based on management's further information or explanations, the auditor may be satisfied that the other information is not materially misstated
• Management explanations may indicate reasonable and sufficient grounds for valid differences of judgment

Further Information Supporting Misstatement:

Conversely, the discussion with management may provide further information that supports the auditor's conclusion that a material misstatement of the other information exists.

Challenging Management on Judgments:

• It may be more difficult to challenge management on matters of judgment than on factual matters
• Circumstances may raise doubt about the other information, the financial statements, or the auditor's knowledge

Nature and Extent of Other Procedures:

As there is a wide range of possible material misstatements, the nature and extent of other procedures are matters of professional judgment.

When Matter is Unrelated to Financial Statements or Auditor's Knowledge:

• The auditor may not be able to fully assess management's responses
• Based on management's information or changes, the auditor may be satisfied
• If unable to conclude, the auditor may request management to consult with a qualified third party
• If still unable to conclude, actions may include:
• Obtaining advice from the auditor's legal counsel
• Considering implications for the auditor's report
• Withdrawing from the audit, where possible

5.7 Responding When Material Misstatement of Other Information Exists (Ref: Para. 17-19, A44-A50)

Actions When Other Information Not Corrected (Ref: Para. 18, A44-A47):

*Professional Judgment Factors:*

• Whether the rationale given for not making the correction raises doubt about the integrity or honesty of management
• Whether the auditor suspects an intention to mislead
• The auditor may consider seeking legal advice
• The auditor may be required to communicate the matter to a regulator or relevant professional body

*Reporting Implications (Ref: Para. 18(a), A45):*

In rare circumstances, a disclaimer of opinion on the financial statements may be appropriate when the refusal to correct the material misstatement casts such doubt on the integrity of management as to call into question the reliability of audit evidence in general.

*Withdrawal from Engagement (Ref: Para. 18(b), A46-A47):*

• Withdrawal may be appropriate when circumstances cast doubt on the integrity of management
• In the public sector, withdrawal may not be possible
• In such cases, the auditor may issue a report to the legislature or take other appropriate actions

Actions When Other Information Obtained After Date of Auditor's Report (Ref: Para. 19, A48-A50):

*If Corrected:*

• Determine that the correction has been made
• May include reviewing steps taken by management to communicate with those in receipt of the other information

*If Not Corrected:*

• Exercise professional judgment
• May be affected by relevant law or regulation
• May consider seeking legal advice

*Appropriate Actions When Uncorrected:*

• Providing a new or amended auditor's report to management including a modified section
• Bringing the material misstatement to the attention of users (e.g., in a general meeting of shareholders)
• Communicating with a regulator or relevant professional body
• Considering implications for engagement continuance

5.8 Responding When Material Misstatement in Financial Statements Exists (Ref: Para. 20, A51)

Implications of New Information:

In reading the other information, the auditor may become aware of new information that has implications for:

• The auditor's understanding of the entity and its environment
• The financial reporting framework and the entity's system of internal control
• The need to revise the auditor's risk assessment
• The auditor's responsibility to evaluate the effect of identified misstatements
• The auditor's responsibilities relating to subsequent events

5.9 Reporting (Ref: Para. 21-24, A52-A59)

Entities Other Than Listed (Ref: Para. 21, A52):

For an audit of an entity other than a listed entity, the auditor may consider that identification in the auditor's report of other information expected to be obtained after the date of the auditor's report would be appropriate to provide additional transparency.

Illustrative Statements (Ref: Para. 21-22, A53):

Illustrative examples of the "Other Information" section are included in Appendix 2.

Reporting Implications When Opinion is Qualified or Adverse (Ref: Para. 23, A54-A58):

*No Impact on Other Information:*

A qualified or adverse opinion may not have an impact on the statement required by paragraph 22(e) if the matter giving rise to the modification is not included or otherwise addressed in the other information.

*Qualified Opinion Due to Material Misstatement in Financial Statements (A55):*

Consideration may be given as to whether the other information is also materially misstated for the same matter or a related matter.

*Qualified Opinion Due to Limitation of Scope (A56):*

• The auditor will not have obtained sufficient appropriate audit evidence about that matter
• The auditor may be unable to conclude whether amounts or other items in the other information related to this matter result in a material misstatement
• The auditor may need to modify the statement required by paragraph 22(e)

*Adverse Opinion (A57):*

• An adverse opinion does not justify omission of reporting material misstatements of the other information
• The auditor may need to modify the statement required by paragraph 22(e)

*Disclaimer of Opinion (A58):*

• When the auditor disclaims an opinion, providing further details about the audit may overshadow the disclaimer
• The auditor's report does NOT include a section addressing the reporting requirements under this HKSA

Reporting Prescribed by Law or Regulation (Ref: Para. 24, A59):

• The auditor may be required to comply with legal or regulatory requirements in addition to HKSAs
• When differences relate only to layout and wording, and each element in paragraph 24 is included, the auditor's report may refer to HKSAs

6. KEY TAKEAWAYS SUMMARY TABLE

Aspect	Key Requirement
------------	---------------------
Scope	Other information in annual report; excludes preliminary announcements and securities offering documents
Objective	Consider material inconsistencies with financial statements and auditor's knowledge; respond appropriately; report
Annual Report Definition	Document(s) providing owners with information on operations, financial results and position
Obtaining Other Information	Determine documents; arrange timely receipt; request written representations for post-report date documents
Reading and Considering	Compare selected amounts; consider consistency with auditor's knowledge; remain alert for other misstatements
Responding to Apparent Misstatements	Discuss with management; perform other procedures to conclude
Material Misstatement Exists	Request correction; communicate with those charged with governance; consider reporting implications or withdrawal
Post-Report Date Misstatements	Perform necessary procedures if corrected; take appropriate action if not corrected
Reporting	Separate "Other Information" section; identify information obtained; state auditor's opinion does not cover; report findings
Documentation	Document procedures performed; retain final version of other information

PART II: TRADITIONAL CHINESE STUDY NOTES

1. 引言及範圍

香港審計準則第720號（修訂） 處理核數師對其他信息的責任，無論是財務或非財務信息（不包括財務報表及核數師報告），這些信息包含在實體的年度報告中。

主要範圍參數：

• 適用於包含在實體年度報告中的信息
• 實體的年度報告可以是單一文件或組合文件，服務相同目的
• 以獨立核數師審計財務報表為背景撰寫
• 核數師對財務報表的意見不涵蓋其他信息
• 本準則不要求核數師獲取超出形成財務報表意見所需的審計證據

準則目的：

核數師須閱讀及考慮其他信息，因為：

• 與財務報表或核數師在審計中獲得的知識存在重大不一致的其他信息，可能表明財務報表存在重大錯誤陳述
• 其他信息可能存在重大錯誤陳述
• 任何一種情況都可能損害財務報表及核數師報告的可信性
• 此類重大錯誤陳述可能不當影響使用者作出的經濟決策

道德考慮：

本準則協助核數師遵守相關道德要求，避免明知地與核數師認為包含以下內容的信息相關聯：

• 重大虛假或誤導性陳述
• 魯莽提供的陳述或信息
• 遺漏或模糊必要信息，以致誤導

其他信息可能包括：

• 旨在與財務報表中的金額或其他項目相同、總結或提供更詳細信息的金額或其他項目
• 核數師在審計中已獲取知識的其他金額或其他項目
• 其他事項

應用時間：

核數師對其他信息的責任適用，無論其他信息是在核數師報告日期之前或之後獲取。

範圍排除：

本準則不適用於：

(a) 財務信息的初步公告

(b) 證券發售文件，包括招股章程

責任性質：

核數師在本準則下的責任：

• 不構成對其他信息的保證委聘
• 不施加核數師獲取關於其他信息的保證的義務

生效日期：

本準則適用於2016年12月15日或之後結束期間的財務報表審計。

2. 目標

核數師在閱讀其他信息後的目標是：

(a) 考慮其他信息與財務報表之間是否存在重大不一致

(b) 考慮其他信息與核數師在審計中獲得的知識之間是否存在重大不一致

(c) 當核數師識別出此類重大不一致似乎存在，或核數師以其他方式知悉其他信息似乎存在重大錯誤陳述時，作出適當回應

(d) 按照本準則作出報告

3. 定義

年度報告（第12(a)段）：

由管理層或治理層通常按年度基準，根據法律、法規或慣例編製的文件或文件組合，目的是向擁有人（或類似利益相關者）提供關於實體營運及財務報表所列的財務業績和財務狀況的信息。

年度報告包含或附有財務報表及核數師報告，通常包括關於以下方面的信息：

• 實體的發展
• 其未來前景及風險和不確定性
• 實體管治機構的聲明
• 涵蓋管治事項的報告

其他信息的錯誤陳述（第12(b)段）：

當其他信息被不正確陳述或以其他方式誤導（包括因為遺漏或模糊了對適當理解其他信息中披露的事項所必要的信息）時，即存在其他信息的錯誤陳述。

其他信息（第12(c)段）：

包含在實體年度報告中的財務或非財務信息（不包括財務報表及核數師報告）。

4. 要求 - 詳細分析

4.1 獲取其他信息（第13段）

核數師須：

(a) 通過與管理層討論確定：

• 哪些文件構成年度報告
• 實體計劃的發布方式及時間

(b) 與管理層作出適當安排，以及時獲取，並如可能，在核數師報告日期之前獲取：

• 構成年度報告的文件的最終版本

(c) 當(a)中確定的部分或全部文件在核數師報告日期之後才可獲得時：

• 要求管理層提供書面陳述，說明文件的最終版本將在可獲得時及在實體發布之前提供給核數師，以便核數師能夠完成本準則要求的程序

4.2 閱讀及考慮其他信息（第14-15段）

第14段 - 閱讀及考慮：

核數師須閱讀其他信息，並在此過程中須：

(a) 考慮其他信息與財務報表之間是否存在重大不一致：

作為此考慮的基礎，核數師須比較其他信息中選定的金額或其他項目（旨在與財務報表中的金額或其他項目相同、總結或提供更詳細信息）與財務報表中的該等金額或其他項目，以評估其一致性。

(b) 考慮其他信息與核數師在審計中獲得的知識之間是否存在重大不一致：

此項考慮是在審計中獲得的審計證據及得出的結論的背景下進行。

第15段 - 對其他跡象保持警覺：

在按照第14段閱讀其他信息時，核數師須對其他信息中與財務報表或核數師在審計中獲得的知識無關的部分似乎存在重大錯誤陳述的跡象保持警覺。

4.3 當重大不一致似乎存在時的回應（第16段）

如果核數師識別出重大不一致似乎存在（或知悉其他信息似乎存在重大錯誤陳述），核數師須：

• 與管理層討論此事項
• 如有必要，執行其他程序以得出結論：

(a) 其他信息是否存在重大錯誤陳述

(b) 財務報表是否存在重大錯誤陳述

(c) 是否需要更新核數師對實體及其環境的了解

4.4 當核數師得出結論認為其他信息存在重大錯誤陳述時的回應（第17-19段）

第17段 - 要求管理層更正：

如果核數師得出結論認為其他信息存在重大錯誤陳述，核數師須要求管理層更正其他信息。

如果管理層：

(a) 同意作出更正 → 核數師須確定更正已作出

(b) 拒絕作出更正 → 核數師須與治理層溝通此事項，並要求作出更正

第18段 - 在核數師報告日期之前獲取的其他信息：

如果核數師得出結論認為在核數師報告日期之前獲取的其他信息存在重大錯誤陳述，且在與治理層溝通後其他信息未獲更正，核數師須採取適當行動，包括：

(a) 考慮對核數師報告的影響，並與治理層溝通核數師計劃如何在核數師報告中處理重大錯誤陳述

(b) 在適用法律或法規允許撤出委聘的情況下，撤出委聘

第19段 - 在核數師報告日期之後獲取的其他信息：

如果核數師得出結論認為在核數師報告日期之後獲取的其他信息存在重大錯誤陳述，核數師須：

(a) 如果其他信息已更正 → 執行情況下必要的程序

(b) 如果在與治理層溝通後其他信息未獲更正 → 考慮核數師的法律權利和義務，採取適當行動，以尋求將未更正的重大錯誤陳述適當提請核數師報告為其編製的使用者注意

4.5 當財務報表存在重大錯誤陳述時的回應（第20段）

如果由於執行第14-15段的程序，核數師得出結論認為：

• 財務報表存在重大錯誤陳述，或
• 需要更新核數師對實體及其環境的了解

→ 核數師須根據其他香港審計準則作出適當回應。

4.6 報告（第21-24段）

第21段 - 何時包含「其他信息」部分：

核數師報告須包含一個標題為「其他信息」或其他適當標題的單獨部分，當在核數師報告日期：

(a) 對於上市實體的財務報表審計 → 核數師已獲取或預期將獲取其他信息

(b) 對於非上市實體的財務報表審計 → 核數師已獲取部分或全部其他信息

第22段 - 「其他信息」部分的內容：

當核數師報告須包含其他信息部分時，該部分須包括：

(a) 管理層對其他信息負責的聲明

(b) 識別：

(i) 核數師在核數師報告日期之前已獲取的其他信息（如有）

(ii) 對於上市實體的財務報表審計，預期在核數師報告日期之後獲取的其他信息（如有）

(c) 聲明核數師的意見不涵蓋其他信息，因此核數師不對其他信息發表（或將不發表）審計意見或任何形式的保證結論

(d) 描述核數師根據本準則在閱讀、考慮及報告其他信息方面的責任

(e) 當其他信息已在核數師報告日期之前獲取時，以下任一：

(i) 核數師沒有事項需要報告的聲明

(ii) 如果核數師得出結論認為存在未更正的重大錯誤陳述，描述其他信息的未更正重大錯誤陳述的聲明

第23段 - 修改意見：

當核數師根據香港審計準則第705號（修訂）發表保留意見或否定意見時，核數師須考慮導致意見修改的事項對第22(e)段要求的聲明的影響。

第24段 - 法律或法規規定的報告：

如果核數師須遵守特定司法管轄區的法律或法規，使用特定格式或措辭在核數師報告中提及其他信息，核數師報告須參考香港審計準則，僅當核數師報告至少包括：

(a) 識別核數師在核數師報告日期之前獲取的其他信息

(b) 描述核數師對其他信息的責任

(c) 明確陳述核數師就此目的的工作結果

4.7 文件記錄（第25段）

在處理香港審計準則第230號適用於本準則的要求時，核數師須在審計文件記錄中包括：

(a) 根據本準則執行的程序的記錄

(b) 核數師已根據本準則執行所需工作的其他信息的最終版本

5. 應用及其他解釋性材料 - 詳細分析

5.1 定義 - 年度報告（參考：第12(a)段，A1-A5）

內容及名稱變異：

• 法律、法規或慣例可能定義年度報告的內容及名稱
• 內容及名稱可能在司法管轄區內及不同司法管轄區之間有所不同

期間涵蓋：

• 通常按年度基準編製
• 當財務報表為少於或多於一年的期間編製時，也可能編製涵蓋相同期間的年度報告

單一文件 vs. 多份文件：

• 可以是稱為「年度報告」或其他名稱的單一文件
• 可以是兩份或以上分開的文件，組合起來服務相同目的

可能構成年度報告一部分的文件示例：

• 管理層報告、管理層評述或經營及財務回顧
• 主席報告
• 企業管治報告
• 內部控制及風險評估報告

提供形式：

• 可以印刷形式或電子形式提供（包括在實體網站上）
• 無論以何種方式提供，文件均符合定義

通常不屬於年度報告的文件：

• 獨立的行業或監管報告（例如資本充足率報告）
• 企業社會責任報告
• 可持續發展報告
• 多元化及平等機會報告
• 產品責任報告
• 勞工慣例及工作條件報告
• 人權報告

5.2 定義 - 其他信息的錯誤陳述（參考：第12(b)段，A6-A7）

遺漏或模糊信息：

當其他信息中披露了特定事項時，其他信息可能遺漏或模糊了對適當理解該事項所必要的信息。

示例：

如果其他信息旨在說明管理層使用的關鍵績效指標，則遺漏管理層使用的關鍵績效指標可能表明其他信息具有誤導性。

重要性考慮：

• 重要性的概念可能在適用於其他信息的框架中討論
• 如果沒有適用的框架，以下特徵提供參考框架：
• 重要性在使用者作為群體的共同信息需求背景下考慮
• 其他信息的使用者預期與財務報表的使用者相同
• 關於重要性的判斷考慮錯誤陳述的具體情況
• 關於重要性的判斷涉及定性及定量考慮

5.3 定義 - 其他信息（參考：第12(c)段，A8-A10）

可能包含的金額或其他項目示例（附錄1）：

*金額：*

• 關鍵財務結果摘要中的項目（淨收入、每股盈利、股息、銷售額等）
• 選定的經營數據（按主要經營區域的收入、按分部或產品線的銷售額）
• 特殊項目（資產處置、訴訟撥備、資產減值）
• 流動性及資本資源信息
• 按分部或部門劃分的資本支出
• 資產負債表外安排涉及的金額
• 擔保、合約義務、法律索償涉及的金額
• 財務指標或比率（毛利率、資本回報率、流動比率）

*其他項目：*

• 關鍵會計估計及相關假設的解釋
• 關聯方的識別及與其交易的描述
• 管理商品、外匯或利率風險政策的闡述
• 資產負債表外安排的描述
• 擔保、賠償、合約義務的描述
• 法律或監管要求變更的描述
• 管理層對新財務報告準則影響的定性評估
• 業務環境及前景的一般描述
• 策略概述
• 關鍵商品或原材料市場價格趨勢的描述
• 影響特定分部盈利能力的具體因素的解釋

位於財務報表外的披露：

• 如果適用的財務報告框架允許特定披露位於財務報表外，該等披露構成財務報表的一部分
• 它們不構成本準則目的的其他信息

XBRL標籤：

• 可擴展商業報告語言（XBRL）標籤不構成本準則定義的其他信息

5.4 獲取其他信息（參考：第13段，A11-A22）

確定年度報告：

• 通常根據法律、法規或慣例明確
• 在某些情況下，文件的時間和目的與確定相關

翻譯及多個司法管轄區：

• 當年度報告根據法律或法規翻譯成其他語言時
• 當根據不同法例編製多份「年度報告」時
• 當地法律或法規可能提供進一步指引

與管理層或治理層的溝通：

核數師可能溝通：

• 關於及時獲取年度報告最終版本的期望
• 當其他信息在核數師報告日期之後獲取時的可能影響

溝通可能特別適當的情況：

• 在首次審計委聘中
• 當管理層或治理層發生變更時
• 當預期其他信息將在核數師報告日期之後獲取時

治理層批准：

當治理層須在發布前批准其他信息時，最終版本是經治理層批准發布的版本。

發布時間：

• 一些年度報告在財務報告期結束後不久發布
• 其他可能不需要在較晚時間之前發布
• 一些年度報告是不同發布時間的文件組合

正在開發的文件：

如果在核數師報告日期，實體正在考慮開發可能構成年度報告一部分的文件，但管理層無法確認其目的或時間，則該文件不被視為本準則目的的其他信息。

網站可用性：

• 當其他信息僅通過實體網站提供時，從實體獲取的版本（而非直接從網站獲取）是相關文件
• 核數師沒有責任搜索實體網站上的其他信息
• 核數師沒有責任確認其他信息在實體網站上適當顯示

核數師報告日期：

如果核數師尚未獲取部分或全部其他信息，核數師不應被阻止註明日期或發布核數師報告。

期後事項：

當其他信息在核數師報告日期之後獲取時，核數師無需更新根據香港審計準則第560號第6及7段執行的程序。

書面陳述：

第13(c)段要求的關於僅在核數師報告日期之後才可獲得的其他信息的書面陳述，旨在支持核數師完成本準則要求的程序的能力。

核數師可能認為有用的額外書面陳述：

• 管理層已告知核數師其預期可能構成其他信息的所有文件
• 財務報表及在核數師報告日期之前獲取的任何其他信息彼此一致
• 其他信息不包含任何重大錯誤陳述
• 關於尚未獲取的其他信息，管理層打算編製及發布該等其他信息及預期發布時間

5.5 閱讀及考慮其他信息（參考：第14-15段，A23-A38）

專業懷疑態度：

核數師須根據香港審計準則第200號以專業懷疑態度規劃及執行審計。這包括：

• 認識到管理層可能對其計劃的成功過於樂觀
• 對可能與財務報表或核數師在審計中獲得的知識不一致的信息保持警覺

審計項目組考慮（香港審計準則第220號（修訂））：

確定適當審計項目組成員的因素：

• 審計項目組成員的相對經驗
• 項目組成員是否具有在審計中獲得的相關知識以識別其他信息與該知識之間的不一致
• 涉及的判斷程度
• 在集團審計中，是否需要向組成部分核數師查詢

考慮與財務報表的重大不一致（參考：第14(a)段，A25-A29）：

*金額或其他項目的示例：*

• 包含財務報表摘錄的表格、圖表或圖形
• 提供財務報表中顯示的餘額或賬戶更詳細信息的披露
• 財務結果的描述

*比較範圍：*

核數師無需比較其他信息中所有旨在與財務報表中的金額或其他項目相同、總結或提供更詳細信息的金額或其他項目。

*選擇因素（專業判斷）：*

• 金額或其他項目在其呈現背景下的重要性
• 金額與財務報表或其他信息中相關賬戶或項目的相對規模
• 特定金額或其他項目的敏感性

*程序示例：*

• 對於旨在相同的信息 → 與財務報表比較
• 對於旨在傳達相同含義的信息 → 比較所用詞語並考慮差異的重要性
• 從管理層獲取對賬並：
• 將對賬中的項目與財務報表及其他信息進行比較
• 檢查對賬中的計算是否算術準確

*呈現一致性：*

評估一致性包括，當相關時，與財務報表相比的呈現方式。

考慮與核數師知識的重大不一致（參考：第14(b)段，A30-A36）：

*金額或項目的示例：*

• 產量披露或按地理區域總結產量的表格
• 聲明「公司在本年度推出了產品X及產品Y」
• 實體主要營運地點的摘要

*核數師在審計中獲得的知識包括：*

• 對實體及其環境的了解（香港審計準則第315號（修訂2019））
• 對適用的財務報告框架的了解
• 對實體內部控制系統的了解
• 前瞻性事項（例如業務前景、未來現金流量）

*記憶的充分性：*

• 對於許多事項，核數師對審計證據及審計中得出的結論的記憶可能足夠
• 經驗越豐富，對審計關鍵方面越熟悉，記憶相關事項的可能性越大

*參考審計文件：*

核數師可能確定參考相關審計文件或向相關審計項目組成員或組成部分核數師查詢是適當的。

對其他跡象保持警覺（參考：第15段，A37-A38）：

*超出核數師知識的事項：*

其他信息可能包括與財務報表無關的事項的討論，並可能超出核數師在審計中獲得的知識（例如關於溫室氣體排放的陳述）。

*警覺的目的：*

協助核數師遵守道德要求，避免明知地與核數師認為包含以下內容的其他信息相關聯：

• 重大虛假或誤導性陳述
• 魯莽提供的陳述
• 遺漏或模糊必要信息

*可能的識別：*

• 其他信息與審計項目組成員的一般知識之間的差異
• 其他信息中的內部不一致

5.6 當重大不一致似乎存在時的回應（參考：第16段，A39-A43）

與管理層討論：

• 可能包括要求管理層提供支持其陳述基礎的資料
• 基於管理層的進一步信息或解釋，核數師可能信納其他信息不存在重大錯誤陳述
• 管理層的解釋可能表明存在合理及充分的理由支持有效的判斷差異

支持錯誤陳述的進一步信息：

相反，與管理層的討論可能提供進一步信息，支持核數師得出結論認為其他信息存在重大錯誤陳述。

對管理層判斷提出質疑：

• 對管理層的判斷事項提出質疑可能比對事實性事項更困難
• 情況可能引起對其他信息、財務報表或核數師知識的懷疑

其他程序的性質及範圍：

由於可能的重大錯誤陳述範圍廣泛，其他程序的性質及範圍是核數師在情況下的專業判斷事項。

當事項與財務報表或核數師知識無關時：

• 核數師可能無法完全評估管理層對核數師查詢的回應
• 基於管理層的信息或變更，核數師可能信納
• 如果無法得出結論，核數師可能要求管理層諮詢合資格第三方
• 如果仍然無法得出結論，行動可能包括：
• 獲取核數師法律顧問的建議
• 考慮對核數師報告的影響
• 在可能的情況下撤出審計

5.7 當其他信息存在重大錯誤陳述時的回應（參考：第17-19段，A44-A50）

當其他信息未更正時的行動（參考：第18段，A44-A47）：

*專業判斷因素：*

• 不作出更正的理據是否引起對管理層誠信或誠實的懷疑
• 核數師是否懷疑有意誤導
• 核數師可能考慮尋求法律建議
• 核數師可能須向監管機構或相關專業團體溝通此事項

*報告影響（參考：第18(a)段，A45）：*

在罕見情況下，當拒絕更正其他信息的重大錯誤陳述對管理層的誠信引起如此懷疑，以致質疑審計證據的整體可靠性時，對財務報表發表無法表示意見可能是適當的。

*撤出委聘（參考：第18(b)段，A46-A47）：*

• 當情況對管理層的誠信引起如此懷疑，以致質疑從管理層獲得的陳述的可靠性時，撤出委聘可能是適當的
• 在公共部門，撤出委聘可能不可行
• 在這種情況下，核數師可能向立法機構發布報告或採取其他適當行動

當其他信息在核數師報告日期之後獲取時的行動（參考：第19段，A48-A50）：

*如果已更正：*

• 確定更正已作出
• 可能包括審閱管理層為與已收到其他信息的人士溝通而採取的步驟

*如果未更正：*

• 運用專業判斷
• 可能受相關法律或法規影響
• 可能考慮尋求法律建議

*未更正時的適當行動：*

• 向管理層提供新的或經修訂的核數師報告，包括經修改的部分
• 將重大錯誤陳述提請使用者注意（例如在股東大會上）
• 與監管機構或相關專業團體溝通
• 考慮對委聘持續性的影響

5.8 當財務報表存在重大錯誤陳述時的回應（參考：第20段，A51）

新信息的影響：

在閱讀其他信息時，核數師可能知悉對以下方面有影響的新信息：

• 核數師對實體及其環境的了解
• 財務報告框架及實體的內部控制系統
• 需要修訂核數師的風險評估
• 核數師評估已識別錯誤陳述的影響的責任
• 核數師對期後事項的責任

5.9 報告（參考：第21-24段，A52-A59）

非上市實體（參考：第21段，A52）：

對於非上市實體的財務報表審計，核數師可能認為在核數師報告中識別預期在核數師報告日期之後獲取的其他信息是適當的，以提供額外透明度。

說明性陳述（參考：第21-22段，A53）：

「其他信息」部分的說明性示例包含在附錄2中。

當意見為保留意見或否定意見時的報告影響（參考：第23段，A54-A58）：

*對其他信息無影響：*

如果導致意見修改的事項未包含在其他信息中或以其他方式在其他信息中處理，保留意見或否定意見可能對第22(e)段要求的聲明無影響。

*因財務報表重大錯誤陳述而發表的保留意見（A55）：*

可能需要考慮其他信息是否因與導致對財務報表發表保留意見的事項相同或相關的事項而同樣存在重大錯誤陳述。

*因範圍限制而發表的保留意見（A56）：*

• 核數師將未獲得關於該事項的充分適當審計證據
• 核數師可能無法得出結論其他信息中與此事項相關的金額或其他項目是否導致其他信息的重大錯誤陳述
• 核數師可能需要修改第22(e)段要求的聲明

*否定意見（A57）：*

• 否定意見不證明省略報告核數師已識別的其他信息的重大錯誤陳述是合理的
• 核數師可能需要修改第22(e)段要求的聲明

*無法表示意見（A58）：*

• 當核數師對財務報表發表無法表示意見時，提供關於審計的進一步詳情可能掩蓋對財務報表的整體無法表示意見
• 核數師報告不包含處理本準則下報告要求的部分

法律或法規規定的報告（參考：第24段，A59）：

• 核數師可能須遵守香港審計準則以外的法律或法規要求
• 當差異僅涉及佈局和措辭，且第24段中的每個要素都包含在內時，核數師報告可參考香港審計準則

6. 關鍵要點總結表

方面	關鍵要求
----------	--------------
範圍	年度報告中的其他信息；不包括初步公告及證券發售文件
目標	考慮與財務報表及核數師知識的重大不一致；適當回應；報告
年度報告定義	向擁有人提供關於營運、財務業績及狀況信息的文件
獲取其他信息	確定文件；安排及時接收；對報告日期後的文件要求書面陳述
閱讀及考慮	比較選定金額；考慮與核數師知識的一致性；對其他錯誤陳述保持警覺
回應明顯錯誤陳述	與管理層討論；執行其他程序以得出結論
存在重大錯誤陳述	要求更正；與治理層溝通；考慮報告影響或撤出
報告日期後的錯誤陳述	如已更正則執行必要程序；如未更正則採取適當行動
報告	獨立的「其他信息」部分；識別已獲取信息；聲明核數師意見不涵蓋；報告發現
文件記錄	記錄執行的程序；保留其他信息的最終版本

PART III: 50 MULTIPLE CHOICE QUESTIONS

Q1. According to HKSA 720 (Revised), what is the scope of the standard?

A. All information in any document issued by the entity

B. Other information included in an entity's annual report

C. Only financial information in the annual report

D. Information in securities offering documents

Answer: B

Q2. Which of the following is EXCLUDED from the scope of HKSA 720 (Revised)?

A. Management commentary in the annual report

B. Chairman's statement

C. Preliminary announcements of financial information

D. Corporate governance statement

Answer: C

Q3. The auditor's opinion on the financial statements:

A. Covers the other information if it is included in the same document

B. Does not cover the other information

C. Covers the other information only for listed entities

D. Covers the other information if specifically requested by management

Answer: B

Q4. According to HKSA 720 (Revised), the auditor's responsibilities relating to other information apply:

A. Only when other information is obtained prior to the date of the auditor's report

B. Only when other information is obtained after the date of the auditor's report

C. Regardless of whether the other information is obtained prior to or after the date of the auditor's report

D. Only for listed entities

Answer: C

Q5. What is the definition of "annual report" according to HKSA 720 (Revised)?

A. A single document containing financial statements only

B. A document or combination of documents prepared annually to provide owners with information on operations and financial results

C. Any document issued by the entity during the year

D. The auditor's report on the financial statements

Answer: B

Q6. A misstatement of the other information exists when:

A. The other information contains any error, no matter how small

B. The other information is incorrectly stated or otherwise misleading

C. The other information differs from the prior year's information

D. The other information is not approved by those charged with governance

Answer: B

Q7. Which of the following is NOT considered "other information" under HKSA 720 (Revised)?

A. Directors' report

B. Chairman's statement

C. XBRL tags

D. Corporate governance statement

Answer: C

Q8. The auditor shall determine which document(s) comprises the annual report through:

A. Review of legal requirements only

B. Discussion with management

C. Review of prior year's documents only

D. Inquiry with shareholders

Answer: B

Q9. When some or all of the annual report documents will not be available until after the date of the auditor's report, the auditor shall:

A. Refuse to issue the auditor's report

B. Request management to provide a written representation

C. Include a qualified opinion in the auditor's report

D. Perform no further procedures

Answer: B

Q10. When reading the other information, the auditor shall consider whether there is a material inconsistency between:

A. The other information and the financial statements only

B. The other information and the auditor's knowledge obtained in the audit only

C. Both A and B

D. The other information and the entity's budget

Answer: C

Q11. According to paragraph 14(a), the auditor shall compare selected amounts or other items in the other information with:

A. All amounts in the financial statements

B. Such amounts or other items in the financial statements

C. The prior year's financial statements

D. Industry averages

Answer: B

Q12. While reading the other information, the auditor shall remain alert for indications that:

A. The other information is not properly formatted

B. The other information not related to the financial statements or auditor's knowledge appears to be materially misstated

C. The other information contains typographical errors

D. The other information is too lengthy

Answer: B

Q13. If the auditor identifies that a material inconsistency appears to exist, the auditor shall:

A. Immediately issue a qualified opinion

B. Discuss the matter with management and, if necessary, perform other procedures

C. Withdraw from the engagement

D. Report the matter to the regulator

Answer: B

Q14. If the auditor concludes that a material misstatement of the other information exists, the auditor shall:

A. Immediately modify the auditor's report

B. Request management to correct the other information

C. Withdraw from the engagement

D. Ignore the matter if it is not material to the financial statements

Answer: B

Q15. If management refuses to correct a material misstatement of the other information, the auditor shall:

A. Accept management's decision

B. Communicate the matter with those charged with governance and request that the correction be made

C. Immediately withdraw from the engagement

D. Issue an adverse opinion

Answer: B

Q16. When a material misstatement exists in other information obtained prior to the date of the auditor's report and is not corrected, the auditor may:

A. Consider the implications for the auditor's report

B. Withdraw from the engagement where possible

C. Both A and B

D. Issue a disclaimer of opinion

Answer: C

Q17. When a material misstatement exists in other information obtained after the date of the auditor's report and is corrected, the auditor shall:

A. Issue a new auditor's report

B. Perform the procedures necessary in the circumstances

C. Withdraw from the engagement

D. Report the matter to the regulator

Answer: B

Q18. The auditor's report shall include a separate section with a heading "Other Information" when:

A. The auditor has obtained all of the other information

B. For a listed entity, the auditor has obtained or expects to obtain the other information

C. The entity requests it

D. The other information contains material misstatements

Answer: B

Q19. The "Other Information" section in the auditor's report shall include:

A. A statement that management is responsible for the other information

B. A statement that the auditor's opinion covers the other information

C. A detailed analysis of the other information

D. The auditor's opinion on the other information

Answer: A

Q20. When the auditor expresses a qualified or adverse opinion, the auditor shall:

A. Always include the same statement in the Other Information section

B. Consider the implications of the matter giving rise to the modification for the statement required in paragraph 22(e)

C. Omit the Other Information section entirely

D. Include a separate opinion on the other information

Answer: B

Q21. When the auditor disclaims an opinion on the financial statements:

A. The auditor's report includes a detailed Other Information section

B. The auditor's report does not include a section addressing the reporting requirements under this HKSA

C. The auditor must still report on the other information

D. The auditor must issue a separate report on the other information

Answer: B

Q22. The auditor shall include in the audit documentation:

A. Only the procedures performed under this HKSA

B. Only the final version of the other information

C. Both the procedures performed and the final version of the other information

D. A summary of discussions with management

Answer: C

Q23. Which of the following is an example of a document that typically forms part of the annual report?

A. A separate sustainability report

B. A corporate social responsibility report

C. A directors' report

D. A capital adequacy report

Answer: C

Q24. The auditor's responsibilities under HKSA 720 (Revised):

A. Constitute an assurance engagement on other information

B. Do not constitute an assurance engagement on other information

C. Require the auditor to obtain assurance about the other information

D. Require the auditor to audit the other information

Answer: B

Q25. When other information is only made available via the entity's website, the relevant document for the auditor's procedures is:

A. The version obtained directly from the entity's website

B. The version obtained from the entity

C. Both versions must be obtained

D. Any publicly available version

Answer: B

Q26. The auditor is NOT precluded from dating or issuing the auditor's report if:

A. The auditor has not obtained some or all of the other information

B. The other information contains material misstatements

C. Management refuses to provide the other information

D. The other information is not yet prepared

Answer: A

Q27. When other information is obtained after the date of the auditor's report, the auditor:

A. Must update all audit procedures

B. Is not required to update the procedures performed in accordance with HKSA 560 paragraphs 6 and 7

C. Must issue a new auditor's report

D. Must withdraw from the engagement

Answer: B

Q28. The concept of materiality for other information is considered in the context of:

A. The auditor's own judgment only

B. The common information needs of users as a group

C. Management's preferences

D. The financial reporting framework only

Answer: B

Q29. When evaluating consistency of selected amounts in the other information with the financial statements, the auditor:

A. Must compare all amounts in the other information

B. Is not required to compare all amounts or other items

C. Must compare only quantitative items

D. Must obtain third-party confirmation

Answer: B

Q30. The auditor's knowledge obtained in the audit includes:

A. Only knowledge of the financial statements

B. Understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control

C. Only knowledge obtained from management representations

D. Only knowledge from external sources

Answer: B

Q31. When the auditor is unable to conclude whether a material misstatement of the other information exists, the auditor may:

A. Ignore the matter

B. Obtain advice from the auditor's legal counsel

C. Issue an unmodified opinion

D. Accept management's explanation without further inquiry

Answer: B

Q32. In rare circumstances, a disclaimer of opinion on the financial statements may be appropriate when:

A. The auditor disagrees with management's accounting policies

B. The refusal to correct the material misstatement of the other information casts doubt on the integrity of management

C. The other information contains minor errors

D. The auditor has not obtained the other information

Answer: B

Q33. Withdrawal from the engagement may be appropriate when:

A. The auditor disagrees with management's estimates

B. Circumstances cast doubt on the integrity of management

C. The other information is not available

D. The audit fee is not agreed

Answer: B

Q34. In the public sector, when withdrawal from the engagement is not possible, the auditor may:

A. Issue a report to the legislature providing details of the matter

B. Ignore the matter

C. Issue an unmodified opinion

D. Accept the situation without action

Answer: A

Q35. When a material misstatement of the other information obtained after the date of the auditor's report remains uncorrected, appropriate actions include:

A. Providing a new or amended auditor's report

B. Bringing the matter to the attention of users

C. Communicating with a regulator

D. All of the above

Answer: D

Q36. In reading the other information, the auditor may become aware of new information that has implications for:

A. The auditor's understanding of the entity and its environment

B. The auditor's risk assessment

C. The auditor's responsibilities relating to subsequent events

D. All of the above

Answer: D

Q37. For an audit of an entity other than a listed entity, the auditor's report shall include an Other Information section when:

A. The auditor has obtained some or all of the other information

B. The entity is required by law to include it

C. The auditor expects to obtain other information

D. The other information contains material misstatements

Answer: A

Q38. The "Other Information" section shall include a statement that:

A. The auditor's opinion covers the other information

B. The auditor does not express an audit opinion or any form of assurance conclusion on the other information

C. The other information has been audited

D. Management is not responsible for the other information

Answer: B

Q39. When the auditor has concluded that there is an uncorrected material misstatement of the other information, the auditor's report shall:

A. Omit the Other Information section

B. Include a statement that describes the uncorrected material misstatement

C. Include a qualified opinion on the financial statements

D. Include a disclaimer of opinion

Answer: B

Q40. When the auditor's opinion is qualified due to a limitation of scope, the auditor:

A. May be unable to conclude whether amounts in the other information related to this matter are materially misstated

B. Must issue an adverse opinion

C. Must withdraw from the engagement

D. Must ignore the other information

Answer: A

Q41. An adverse opinion on the financial statements:

A. Justifies omission of reporting material misstatements of the other information

B. Does not justify omission of reporting material misstatements of the other information

C. Requires the auditor to issue a separate report on the other information

D. Eliminates the need to read the other information

Answer: B

Q42. When the auditor is required by law or regulation to use a specific layout or wording in the auditor's report, the auditor may refer to HKSAs if the report includes at a minimum:

A. Identification of the other information obtained

B. A description of the auditor's responsibilities

C. An explicit statement addressing the outcome of the auditor's work

D. All of the above

Answer: D

Q43. The auditor's discussion with management about a material inconsistency may include:

A. Requesting management to provide support for the basis of management's statements

B. Immediately reporting to the regulator

C. Issuing a qualified opinion

D. Withdrawing from the engagement

Answer: A

Q44. When a matter in the other information is unrelated to the financial statements or the auditor's knowledge, the auditor:

A. Must ignore the matter

B. May not be able to fully assess management's responses

C. Must obtain third-party confirmation

D. Must include the matter in the auditor's report

Answer: B

Q45. The auditor may request management to consult with a qualified third party when:

A. The auditor agrees with management's position

B. The auditor is unable to conclude whether a material misstatement exists

C. The other information is complete

D. The financial statements are fairly presented

Answer: B

Q46. Which of the following is an example of an amount that may be included in other information?

A. Items in a summary of key financial results

B. Explanations of critical accounting estimates

C. Descriptions of the business environment

D. All of the above

Answer: D

Q47. The auditor's responsibility to read and consider the other information:

A. Applies only to listed entities

B. Applies to all entities subject to audit

C. Applies only when specifically requested

D. Applies only to financial information

Answer: B

Q48. When determining the appropriate engagement team members to address the requirements of paragraphs 14-15, factors include:

A. The relative experience of engagement team members

B. The degree of judgment involved

C. Whether it is necessary to make inquiries of a component auditor

D. All of the above

Answer: D

Q49. The auditor's recollection of audit evidence obtained and conclusions reached:

A. Is never sufficient for considering material inconsistencies

B. May be sufficient for many matters in the other information

C. Must always be supplemented by additional procedures

D. Is irrelevant to the consideration of other information

Answer: B

Q50. When the other information is corrected after the date of the auditor's report, the auditor's procedures include:

A. Determining that the correction has been made

B. Issuing a new auditor's report

C. Withdrawing from the engagement

D. Reporting the matter to the regulator

Answer: A