How to Address Supplementary Information in Compilation and Preparation Engagements
Are you wondering how to present supplementary information in compilation and preparation engagements? What supplementary information (SI) should be included?…
Supplementary information (SI) is commonly provided in audit reports. For example, a business might desire to provide a detail of its operating expenses.
SI is not a part of the basic financial statements and is usually optional.
In some instances supplementary is required by a reporting framework such as the Governmental Accounting Standards Board (GASB). For example, certain pension information is required as required supplementary information (RSI) for governments. But most SI is not required by a reporting framework. The information is usually included in the financial statements as a way to provide additional details such as a detail of miscellaneous income. This information usually appears just after the notes to the financial statements.
Auditors can opine on SI using an in-relation-to opinion (though RSI is not opined upon). When the information is opined on, the auditor adds an additional paragraph to their standard audit opinion (or a separate report) to explain what was done.
Generally accepted auditing standards provide guidance about auditing SI, other information, RSI.
AU-C Section 725 provides guidance for supplementary information in relation to the financial statements as whole.
AU-C Section 720 provides guidance for other information included in annual reports.
AU-C Section 730 provides information about required supplementary information.
Are you wondering how to present supplementary information in compilation and preparation engagements? What supplementary information (SI) should be included?…
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