Lesson: Supplementary Information to Financial Statements

In this lesson, the concept of supplementary information as related to financial statements is discussed in detail. This type of information is not part of the basic financial statements but is considered essential for the readers to understand the financials in context. The lesson differentiates between supplementary information and notes to the financial statements and explains the auditor's responsibility to perform limited procedures on the supplementary information to ensure its compliance with GAAP. The lesson goes on to discuss the requirements related to reporting on supplementary information according to GAAP and FASB, and clarifies the auditor's role in auditing and reporting on the supplementary information. Finally, the lesson covers the auditor's responsibility to read other information in the document and assess its consistency with the audited financial statements.