Wiley Practitioner's Guide to GAAS 2022

37AU-C 725 Supplementary Information in Relation to the Financial Statements as a Whole

• Scope
• Definition of Term
• Objectives of AU-C Section 725
• Requirements
  • Conditions
  • Management's Responsibilities
  • Procedures
  • Report
  • Opinion on Supplementary Information
• Interpretation
  • Supplementary Information in Relation to the Financial Statements as a Whole: Auditing Interpretations of Section 725
• AU-C 725 Illustrations

SCOPE

AU-C 725 offers guidance to auditors when they are engaged to report on whether supplementary information is fairly stated in all material respects in relation to the financial statements as a whole. The supplementary information is presented outside the financial statements and is not necessary to the basic financial statements. If the audit is of an employee benefit plan subject to ERISA, the auditor should apply the requirements in Section 703. Therefore, AU-C 725.09 requirements are replaced by the Section 703 requirements. (AU-C 725.01)

DEFINITION OF TERM

Source: AU-C 725.03. For the definition related to this standard, see Appendix A, “Definitions of Terms”: Supplementary information.

OBJECTIVES OF AU-C SECTION 725

AU-C Section 725.03 states that:

… the objectives of the auditor, when engaged to report on supplementary information in relation to the financial statements as a whole, are 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 ...