Implications for Completion of the Audit and the Auditor’s Report

• The auditor should discuss with management any information in the statement that appears inaccurate or inconsistent.
• In the case of the incorrect disclosure relating to IFRS S1, the auditor should seek further information to support the minutes, such as names of the team that worked on IFRS S1 adoption, date of adoption, and completion status.
• The auditor should request that any inaccurate, inappropriate, or inconsistent information in the Chairman’s statement be removed or amended.
• If management refuses to make the necessary changes, the auditor should escalate the matter to those charged with governance.

Impact on the Auditor’s Report

• If the other information remains uncorrected, the auditor would use the Other Information section of the audit report to draw users’ attention to the misstatements in the Chairman’s statement.
• This section would include:
  • A statement that management is responsible for the other information.
  • A statement that the auditor’s opinion does not cover the other information, and the auditor does not express an audit opinion or assurance conclusion on it.
  • A description of the auditor’s responsibilities relating to reading, considering, and reporting on other information as required by ISA 720.
  • A statement describing the uncorrected material misstatement of the other information.
• Since the inconsistency is in the Chairman’s statement rather than the audited financial statements, the audit opinion remains unmodified.