Submission to IAASB on ISA 720

On 18 July 2014 the Australian Institute of Company Directors provided a submission to the International Auditing and Assurance Standards Board in response to Exposure Draft ISA 720: The Auditor’s Responsibilities Relating to Other Information, Proposed Consequential and Conforming Amendments to Other ISAs (ISA 720). In summary, Company Directors comments were as follows:

• concerns about what would be included within the “other information” for the purposes of ISA 720;
  
• whether the proposed auditor reporting would effectively communication with users as to the nature and extent of consideration by the auditor of “other information”; and
• concerns that ISA 720 would not effectively reduce the audit expectation gap.