DTTL does, however, have additional recommendations to further enhance and clarify the Proposal in the following areas: Addressing the work effort required for other information that cannot be auditor’s reconciled to the financial statements. DTTL observes that the focus of Proposed ISA 720 (Revised) remains primarily on other information that is to be the same as, to summarize, or to provide greater detail “intended about, the amounts or other items in the financial The Proposed statements” (paragraph 15). ISA 720 (Revised) provides less clarity, relating to financial and non-financial information, when it comes to: (a) reading the other information that one has to for material inconsistencies “consider” between the other information and the knowledge, or auditor’s when reading the other information for material misstatements. (b) remaining “alert” DTTL believes that there should be a clear expectation in the requirements of the Proposal for both what the auditor is expected to do relative to the information that is to be “intended the same as, to summarize, or to provide greater detail about, the amounts or other items in the financial and that information which is not. statements” Reconciling the concept described by the International Ethics “engagement period” Standards Board of Code of Ethics for Professional Accountants, Accountants’ (IESBA) with the responsibility to address other information obtained after the date of the auditor’s report. As drafted, DTTL believes that the procedures required by the Proposal would not extend the engagement period beyond the date the report is issued. auditor’s Both of these matters are further discussed in the Appendix, along with other recommendations to the questions posed by the IAASB. included within DTTL’s responses **** DTTL appreciates the opportunity to provide perspectives on these significant considerations with respect to the responsibilities in relation to annual reports and the information auditor’s companies’ contained therein beyond the audited financial statements. DTTL would be pleased to discuss this letter with the staff at your convenience. If you have any questions, please contact me via email () or at +1 305 372 3143. Very truly yours, Carlos A. Sabater Global Managing Director, Audit & Enterprise Risk Services Deloitte Touche Tohmatsu Limited APPENDIX RESPONSE TO REQUESTS FOR SPECIFIC COMMENTS to the detailed questions included in the DTTL’s responses IAASB’s explanatory memo accompanying the Proposed ISA 720 (Revised) are set forth in this section. These responses
DTTL does, however, have additional recommendations to further enhance and clarify the Proposal in the following areas: Addressing the auditor’s work effort required for other information that cannot be reconciled to the financial statements. DTTL observes that the focus of Proposed ISA 720 (Revised) remains primarily on other information that is “intended to be the same as, to summarize, or to provide greater detail about, the amounts or other items in the financial statements” (paragraph 15). The Proposed ISA 720 (Revised) provides less clarity, relating to financial and non-financial information, when it comes to: (a) reading the other information that one has to “consider” for material inconsistencies between the other information and the auditor’s knowledge, or (b) remaining “alert” when reading the other information for material misstatements. DTTL believes that there should be a clear expectation in the requirements of the Proposal for both what the auditor is expected to do relative to the information that is “intended to be the same as, to summarize, or to provide greater detail about, the amounts or other items in the financial statements” and that information which is not. Reconciling the “engagement period” concept described by the International Ethics Standards Board of Accountants’ (IESBA) Code of Ethics for Professional Accountants, with the responsibility to address other information obtained after the date of the auditor’s report. As drafted, DTTL believes that the procedures required by the Proposal would not extend the engagement period beyond the date the auditor’s report is issued. Both of these matters are further discussed in the Appendix, along with other recommendations included within DTTL’s responses to the questions posed by the IAASB. **** DTTL appreciates the opportunity to provide perspectives on these significant considerations with respect to the auditor’s responsibilities in relation to companies’ annual reports and the information contained therein beyond the audited financial statements. DTTL would be pleased to discuss this letter with the staff at your convenience. If you have any questions, please contact me via email () or at +1 305 372 3143. Very truly yours, Carlos A. Sabater Global Managing Director, Audit & Enterprise Risk Services Deloitte Touche Tohmatsu Limited APPENDIX RESPONSE TO REQUESTS FOR SPECIFIC COMMENTS DTTL’s responses to the detailed questions included in the IAASB’s explanatory memo accompanying the Proposed ISA 720 (Revised) are set forth in this section. These responses
IAASBProposedISA720RevisedDTTLcommentletterfinal.docx