Document ID: chunk:federal_register_of_legislation:F2023C01140:reg:39:p33
Version: federal_register_of_legislation:F2023C01140
Segment Type: reg
Provision Reference: reg 39 (pt 33/53)
Character Range: 101841–104996

applicable financial reporting framework.  For example, supplementary information might be presented to enhance a user's understanding of the applicable financial reporting framework or to provide further explanation of specific financial statement items.  Such information is normally presented in either supplementary schedules or as additional notes.

A79.         Paragraph 53 explains that the auditor's opinion covers supplementary information that is an integral part of the financial report because of its nature or how it is presented.  This evaluation is a matter of professional judgement.  To illustrate:

           * When the notes to the financial statements include an explanation or the reconciliation of the extent to which the financial report complies with another financial reporting framework, the auditor may consider this to be supplementary information that cannot be clearly differentiated from the financial report.  The auditor's opinion would also cover notes or supplementary schedules that are cross‑referenced from the financial report.

           * When an additional profit and loss account that discloses specific items of expenditure is disclosed as a separate schedule included as an Appendix to the financial report, the auditor may consider this to be supplementary information that can be clearly differentiated from the financial report.

A80.         Supplementary information that is covered by the auditor's opinion does not need to be specifically referred to in the auditor's report when the reference to the notes in the description of the statements that comprises the financial report in the auditor's report is sufficient.

A81.         Law or regulation may not require that the supplementary information be audited, and management may decide to ask the auditor not to include the supplementary information within the scope of the audit of the financial report.

A82.         The auditor's evaluation whether unaudited supplementary information is presented in a manner that could be construed as being covered by the auditor's opinion includes, for example, where that information is presented in relation to the financial report and any audited supplementary information, and whether it is clearly labelled as "unaudited."

A83.         Management could change the presentation of unaudited supplementary information that could be construed as being covered by the auditor's opinion, for example, by:

           * Removing any cross‑references from the financial report to unaudited supplementary schedules or unaudited notes so that the demarcation between the audited and unaudited information is sufficiently clear.

           * Placing the unaudited supplementary information outside of the financial report or, if that is not possible in the circumstances, at a minimum placing the unaudited notes together at the end of the required notes to the financial report and clearly labelling them as unaudited.  Unaudited notes that are intermingled with the audited notes can be misinterpreted as being audited.

A84.         The fact that supplementary information is unaudited does not relieve the