SA 720 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Reading the other information is only half of SA 720; the auditor must also report on it. This second part covers when the report needs an "Other Information" section, what it must say, how a qualified, adverse or disclaimed opinion changes it, and what goes into the audit file.
SA 720 (Revised), as effective for audits of financial statements for periods beginning on or after 1 April 2018, applies to other information in the annual report. ICAI may revise standards, so check icai.org for the current text. Timetabling the annual report is a task for compliance advisory planning as much as for the auditor. The reading and response steps are in SA 720 part 1.
The auditor's report has a separate section headed "Other Information" (or another suitable heading) when, at the report date, the auditor of a listed entity has obtained or expects to obtain the other information, or the auditor of an unlisted corporate entity has obtained some or all of it (paragraph 21). The section says management is responsible for it, that the opinion does not cover it, describes the auditor's responsibilities, and states either that the auditor has nothing to report or describes an uncorrected material misstatement (paragraph 22).
When the section is needed (paragraph 21)
| Entity | Section needed when, at the report date | Paragraph |
|---|---|---|
| Listed entity | The auditor has obtained, or expects to obtain, the other information | 21(a) |
| Unlisted corporate entity | The auditor has obtained some or all of the other information | 21(b) |
India-specific change: the international standard also covers other unlisted entities. The printed Indian text restricts paragraph 21(b) to unlisted corporate entities, because most unlisted non-corporate entities are not required to issue annual reports, and it would be impractical to get any other information by the report date. As a result, the reporting requirements do not apply to unlisted non-corporate entities, although all the other requirements of the standard apply to all unlisted entities (note on modifications; paragraph A52).
For an unlisted corporate entity, where the auditor expects to obtain other information after the report date, it may be appropriate to identify that information in the report for transparency, for example when management can represent that it will be issued later (A52).
Contents of the section (paragraph 22)
The section includes:
| Element | Paragraph |
|---|---|
| A statement that management is responsible for the other information | 22(a) |
| Identification of other information obtained before the report date and, for a listed entity, other information expected to be obtained after it | 22(b) |
| A statement that the opinion does not cover the other information and the auditor does not express (or will not express) an audit opinion or any form of assurance conclusion on it | 22(c) |
| A description of the auditor's responsibilities for reading, considering and reporting on other information | 22(d) |
| For other information obtained before the report date: either a statement that the auditor has nothing to report, or a description of any uncorrected material misstatement of the other information | 22(e) |
The standard's appendices contain illustrative "Other Information" sections for different situations, among them an unmodified opinion where all the other information was obtained beforehand and nothing is to be reported, and listed-entity examples. The illustrations are not reproduced here; the wording is set out in the standard itself, and the layout of the overall report is in SA 700 part 2.
Modified opinions (paragraph 23)
When the auditor expresses a qualified or adverse opinion under SA 705, the auditor considers what the matter behind the modification means for the statement in paragraph 22(e).
| Situation | Effect on the Other Information section |
|---|---|
| The modification concerns something not included or addressed in the other information and does not affect any part of it | Possibly none; for example, a qualification because directors' remuneration is not disclosed as the framework requires may have no implication (A54) |
| Qualified for a material misstatement | Consider whether the other information is also misstated about the same or a related matter (A55) |
| Qualified because of a limitation of scope | The auditor may be unable to conclude whether related amounts in the other information are misstated, and may need to modify the statement to refer to that inability; other material misstatements must still be reported (A56) |
| Adverse | The adverse opinion does not justify leaving out reporting of material misstatements of the other information that the auditor identified; the statement may need to be modified to show that items are misstated for the same or a related matter (A57) |
| Disclaimer | The report does not include the section at all, as it could overshadow the disclaimer (A58; see also SA 705, which says no Other Information section unless law requires) |
Reporting prescribed by law (paragraph 24)
If law or regulation requires a specific layout or wording to refer to the other information, the report refers to the SAs only if it includes at least:
- identification of the other information obtained before the report date;
- a description of the auditor's responsibilities for it; and
- an explicit statement on the outcome of the auditor's work.
If the differences relate only to layout and wording and these minimum elements are present, the auditor is considered to have complied with the standard (A59).
Documentation (paragraph 25)
Under SA 230, the file includes the documentation of the procedures performed under this standard and the final version of the other information on which the work was performed (see SA 230).
What other information is
Appendix 1 of the standard lists examples of amounts and other items that may be in the other information. In summary: amounts such as key financial results, selected operating data by segment or product, special items, liquidity and capital resource data, capital expenditure, off-balance sheet arrangements, contingencies and financial ratios; and other items such as explanations of critical estimates, related party descriptions, risk management policies, changes in law and regulation affecting the entity, the effect of new accounting standards, business environment, strategy and trends.
Illustrative example
Greystone Cement Ltd is an invented listed company; all figures are illustrative. The auditor has obtained the board's report and management discussion before signing the report on 25 May, and expects the corporate governance report to follow in June. The Other Information section identifies the first two documents as obtained, says the corporate governance report is expected, states management is responsible for all of them, states that the opinion does not cover them, describes the auditor's duty to read and consider them, and says: for the documents obtained, nothing to report. In June the governance report arrives and the auditor reads it. Had the auditor found an uncorrected misstatement before the report date, the section would have described it instead of "nothing to report".
For a smaller, unlisted private company with no annual report documents at the report date, there is no Other Information section; for an unlisted non-corporate firm the reporting requirement does not apply at all.
Need help with the annual report pack?
The Other Information section depends on getting the final annual report documents to the auditor in good time. TaxClue's compliance advisory team can help you plan the annual report timetable so that the board's report and other documents reach the auditor before the audit report is signed.
Key takeaways
- The section is required for listed entities and unlisted corporate entities, with the Indian text excluding unlisted non-corporate entities.
- It says management is responsible, the opinion does not cover the information and what the auditor found.
- A modified opinion may change the statement, and a disclaimer removes the section.
- Legally prescribed formats must still show the minimum three elements.
- The file keeps the final version of the other information that was checked.
Read next
- SA 720 part 1: obtaining, reading and considering
- SA 700 part 2: elements of the auditor's report
- SA 701: key audit matters
- SA 705: modifications to the opinion
Disclaimer: Based on the Standards on Auditing and quality standards issued by the Institute of Chartered Accountants of India, in the versions named in the article, and ICAI's announcement of 31 March 2026 on SQM 1 and SQM 2, as consulted on 3 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org. This article is general information, not legal advice; check the official text before acting.