What is Supplementary information (in relation to)?
In short
When supplementary information, such as consolidating schedules or a schedule of expenditures of federal awards, accompanies audited statements, the auditor can report on whether it is fairly stated in all material respects in relation to the financial statements as a whole.
Key takeaways
- It uses the same materiality as the audit of the financial statements.
- The report is an other-matter paragraph or a separate report.
- Required supplementary information follows different, more limited procedures.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Required supplementary information (RSI) prescribed by GASB is omitted by the client. The basic financial statements are fairly presented. What type of report should the auditor issue?