Supplementary Information Audit Opinion

You can report on supplementary information in an audit opinion or as a separate report

Are you looking for a supplementary information audit opinion example? Well, here it is.

supplementary information audit opinion

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Two Options for Reporting

You can opine on supplementary information in two ways:

  1. In the financial statement opinion or
  2. In a separate opinion that addresses just the supplementary information

Below you will see sample wording for both options.

The wording for the supplementary information opinion comes from AU-C section 725.A17 (Illustration 1).

The auditor opines on supplementary information in relation to financial statements as a whole

Option 1.

Unmodified Opinion on Supplementary Information—Other-matter paragraph:

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Stockholders of  [Name of Company]

Report on the Financial Statements1

We have audited the accompanying financial statements of   [Name of Company] (a  [State of Incorporation] corporation), which comprise the balance sheet as of   [Date], and the related statements of income, retained earnings, and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.  An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of   [Name of Company] as of   [Date], and the results of its operations and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.  The [Identify supplementary information.] is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

[Firm’s Signature]

[City and State]

[Report Date]

Notes:

1. The heading “Report on the Financial Statements” is optional.

Option 2.

Alternatively, supplementary information may be reported on separately in the following manner.

Unmodified Opinion on Supplementary Information-Separate Report:

INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY INFORMATION

To the Board of Directors and Stockholders of   [Name of Company]

We have audited the financial statements of [Name of Company] as of and for the [Period] ended [Date], and our report thereon dated [Date], which expressed an unmodified opinion on those financial statements, appears on page [Page Number]. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The [Identify the supplementary information] is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

[Firm’s Signature]

[City and State]

[Report Date]

Additional Information

For an overview of supplementary information, additional information, and required supplementary information, click here.

For information regarding reporting on supplementary information in preparation and compilation reports, click here.

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