Other information in the audit: Verification issues

Abstract

Subject. This article discusses the issues related to the identification of possible and actual material inconsistencies (distortions) between other information reflected in the annual report of the audited entity and its accounting (financial) statements. Objectives. The article aims to present the author-developed interpretation of this identification. Methods. For the study, I used systems, and functional and structural analyses, as well as special audit procedures. Results. Based on the analysis of the main problems of identifying possible and actual material inconsistencies (distortions) between other information reflected in the annual report of the audited entity and its accounting (financial) statements, the article proposes ways to solve them. Conclusions. International Standard on Auditing (ISA) 720 regulates the need to consider other information during the audit, but the issue of its practical implementation is still poorly worked out.