An investigation of the auditor's role in auditing “other information” in annual reports : evidence from senior audit professionals.
Degree GrantorUniversity of Canterbury
Degree NameMaster of Commerce
This research investigates the auditor’s role in auditing the “other information in annual reports and attempts to address the significant gap in knowledge on auditors’ role in auditing “other information”. In particular, this research tries to better understand the following: 1) the auditor’s role and responsibilities for the “other information” while auditing financial statements; 2) how ISA 720, both current and revised versions, affect current practice and the challenges it brings; and 3) to further understand the audit performance-expectation gap, specifically, the performance gap identified Porter (1993). Nine interviews were conducted with senior audit professionals who provided the basis for the findings. The interviews were recorded, transcribed, managed and analysed with the use of NVivo 11. The findings confirm the subjectivity within ISA 720 The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. This research also reveals the challenges auditors face in balancing the expectations of society and the practicalities of working at the margins of their professional judgement and knowledge. Ultimately, the findings will be applicable to practice, policy-makers, current literature and theory, by expanding the knowledge in an under researched area.