ACCA Audit and Assurance (F8) Practice Exam

Which of the following items is NOT considered Other Information in an audit context?

1. Information on planned capital expenditures

2. Report on operations

3. Management's opinion on market trends

4. Financial summaries

The correct answer is: Management's opinion on market trends

In the context of an audit, "Other Information" typically refers to information that is not part of the financial statements but is included in annual reports or other client documents. This type of information can include details that provide additional context for understanding the financial statements but are not covered within the scope of the audit. Management's opinion on market trends is not classified as "Other Information" in an audit context because it is subjective and represents management's views rather than factual data or performance metrics relevant to the financial statements. It does not offer any assurance regarding the reliability of the financial information, which is a primary focus in audits. On the other hand, items such as information on planned capital expenditures, reports on operations, and financial summaries typically provide context or insights relevant to the audited financial statements, making them considered as "Other Information." These items can inform stakeholders about the company's future strategies, operational performance, and financial health beyond the immediate figures presented in the audit. Thus, distinguishing subjective management opinions from tangible financial and operational data is crucial in determining what constitutes Other Information.