The revised ISA aims to clarify and increase the auditor’s involvement with “other information”—defined in the standard as financial and non-financial information, other than the audited financial statements, that is included in entities’ annual reports.

The staff-prepared Basis for Conclusions relates to, but does not form part of, ISA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information. It provides background for, and a summary of, the rationale for the IAASB’s conclusions.

The staff-prepared Basis for Conclusions provides background on the revised pronouncement, Changes to the Code Addressing Certain Non-Assurance Services Provisions for Audit and Assurance Clients, including significant decisions made regarding each change. 

The changes in the pronouncement enhance the independence provisions in the Code of Ethics for Professional Accountants™ (the Code) by, in particular, no longer permitting auditors to provide certain prohibited non-assurance services to public interest entity (PIE) audit clients in emergency situations, and ensuring that they do not assume management responsibility when providing non-assurance services to audit clients.