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Are notes to accounts audited?

Auditors are required to express an opinion on the financial statements as a whole. This includes the notes to the financial statements which are an integral part of the accounts, providing additional information on balances and transactions and other relevant information.

What must be in notes to financial statements?

Notes to financial statements Notes to the financial statements disclose the detailed assumptions made by accountants when preparing a companys: income statement, balance sheet, statement of changes of financial position or statement of retained earnings. The notes are essential to fully understanding these documents.

What is GAAP documents?

The generally accepted accounting principles (GAAP) are a set of accounting rules, standards, and procedures issued and frequently revised by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements.

What are the notes to audited financial statements?

The notes to the financial statements communicate information necessary for a fair presentation of financial position and results of operations that is not readily apparent from, or not included in, the financial statements themselves.

Are notes to financial statements required by GAAP?

Notes to the financial statements are required by the Financial Accounting Standards Board. Notes are used to disclose important information that explains how accountants applied GAAP in their financial reporting of the company.

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