Document ID: chunk:federal_register_of_legislation:F2023C01138:reg:4:p8
Version: federal_register_of_legislation:F2023C01138
Segment Type: reg
Provision Reference: reg 4 (pt 8/43)
Character Range: 27401–30499

manner in which it is made available to users.

A5.             An annual report is different in nature, purpose and content from other reports, such as a report prepared to meet the information needs of a specific stakeholder group or a report prepared to comply with a specific regulatory reporting objective (even when such a report is required to be publicly available).  Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report (subject to law, regulation or custom), and that, therefore, are not other information within the scope of this Auditing Standard, include:

           * Separate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and superannuation industries.

           * Corporate social responsibility reports.

           * Sustainability reports.

           * Diversity and equal opportunity reports.

           * Product responsibility reports.

           * Labour practices and working conditions reports.

           * Human rights reports.

Misstatement of the Other Information (Ref: Para. 12(b))

A6.             When a particular matter is disclosed in the other information, the other information may omit or obscure information that is necessary for a proper understanding of that matter.  For example, if the other information purports to address the key performance indicators used by management, then omission of a key performance indicator used by management could indicate that the other information is misleading.

A7.             The concept of materiality may be discussed in a framework applicable to the other information and, if so, such a framework may provide a frame of reference for the auditor in making judgements about materiality under this Auditing Standard.  In many cases, however, there may be no applicable framework that includes a discussion of the concept of materiality as it applies to the other information.  In such circumstances, the following characteristics provide the auditor with a frame of reference in determining if a misstatement of the other information is material:

           * Materiality is considered in the context of the common information needs of users as a group.  The users of the other information are expected to be the same as the users of the financial report as such users may be expected to read the other information to provide context to the financial report.

           * Judgements about materiality take into account the specific circumstances of the misstatement, considering whether users would be influenced by the effect of the uncorrected misstatement.  Not all misstatements will influence the economic decisions of users.

           * Judgements about materiality involve both qualitative and quantitative considerations.  Accordingly, such judgements may take into account the nature or magnitude of the items that the other information addresses in the context of the entity's annual report.

Other Information (Ref: Para.