**Vertex Ltd.** issues an annual report containing:

audited financial statements;
the auditor’s report;
a management review containing several financial ratios and selected operating statistics; and
a chairman’s statement discussing the company’s expected future expansion.

The auditor has read the other information obtained before the date of the auditor’s report.

The auditor discovers that the management review states:

“Revenue increased by 28% during the year.”

The audited financial statements, however, show that revenue increased by only **8%**.

Management refuses to correct the statement, although the auditor concludes that the statement is a **material misstatement of other information**.

There is no material misstatement in the financial statements themselves.

Which ONE of the following is **most appropriate**?

**A.**

The auditor should modify the audit opinion because a material misstatement has been identified within the annual report, even though the financial statements themselves are not misstated.

**B.**

The auditor should describe the uncorrected material misstatement in the Other Information section, while the audit opinion on the financial statements remains unmodified because the matter concerns other information.

**C.**

The auditor should include the matter in an Emphasis of Matter paragraph because the incorrect revenue percentage is relevant to users’ understanding of the audited financial statements.

**D.**

The auditor should omit reference to the matter because SA 720 requires only consideration of inconsistencies affecting amounts recognised or disclosed in the audited financial statements.