Wiley Practitioner's Guide to GAAS 2015: Covering all SASs, SSAEs, SSARSs, PCAOB Auditing Standards, and Interpretations

AU-C 725 Supplementary Information in Relation to Financial Statements as a Whole

AU-C ORIGINAL PRONOUNCEMENTS

Original Pronouncements

Statements on Auditing Standards (SAS) 119, 122, 125.

AU-C DEFINITION OF TERM

Source: AU-C 725.04

Supplementary information. Information presented outside the basic financial statements, excluding required supplementary information that is not considered necessary for the financial statements to be fairly presented in accordance with the applicable financial reporting framework. Such information may be presented in a document containing the audited financial statements or separate from the financial statements.

OBJECTIVE OF AU-C SECTION 725

AU-C 725.03 states that:

The objective of the auditor, when engaged to report on supplementary information in relation to the financial statements as a whole, is to

1. evaluate the presentation of the supplementary information in relation to the financial statements as a whole and
2. report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

FUNDAMENTAL REQUIREMENTS

An auditor should determine that all of the following conditions are met in order to determine whether supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole:

• Source of material. The supplementary information was derived from the accounting records used to prepare the financial statements. ...