Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

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

• Scope
• Definition of Term
• Objectives of AU-C 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 AU-C
• 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 AU-C 703. Therefore, AU-C 725.09 requirements are replaced by the AU-C 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 725

AU-C 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 is fairly stated, in all material ...