Document ID: chunk:federal_register_of_legislation:F2023C01138:reg:4:p13
Version: federal_register_of_legislation:F2023C01138
Segment Type: reg
Provision Reference: reg 4 (pt 13/43)
Character Range: 40923–43992

of the amount or other item in the context in which it is presented, which may affect the importance that users would attach to the amount or other item (for example, a key ratio or amount).

           * If quantitative, the relative size of the amount compared with accounts or items in the financial report or the other information to which they relate.

           * The sensitivity of the particular amount or other item in the other information, for example, share based payments for senior management.

A28.         Determining the nature and extent of procedures to address the requirement in paragraph 14(a) is a matter of professional judgement, recognising that the auditor's responsibilities under this Auditing Standard do not constitute an assurance engagement on the other information or impose an obligation to obtain assurance about the other information.  Examples of such procedures include:

           * For information that is intended to be the same as information in the financial report, comparing the information to the financial report.

           * For information intended to convey the same meaning as disclosures in the financial report, comparing the words used and considering the significance of differences in wording used and whether such differences imply different meanings.

           * Obtaining a reconciliation between an amount within the other information and the financial report from management and:

                   + Comparing items in the reconciliation to the financial report and the other information; and

                   + Checking whether the calculations within the reconciliation are arithmetically accurate.

A29.         Evaluating the consistency of selected amounts or other items in the other information with the financial report includes, when relevant given the nature of the other information, the manner of their presentation compared to the financial report.

Considering Whether There Is a Material Inconsistency between the Other Information and the Auditor's Knowledge Obtained in the Audit (Ref: Para. 14(b))

A30.         Other information may include amounts or items that are related to the auditor's knowledge obtained in the audit (other than those in paragraph 14(a)).  Examples of such amounts or items may include:

           * A disclosure of the units produced, or a table summarising such 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, such as "the entity's major centre of operation is in country X, and there are also operations in countries Y and Z."

A31.         The auditor's knowledge obtained in the audit includes the auditor's understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, obtained in accordance with ASA 315.[12]  ASA 315 sets out the auditor's required understanding, which includes such matters as obtaining an