NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S

Running head: NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT
AUDITORS’S REPORT
NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S
REPORT
Name of the Student:
Name of the University:
Author Note

NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S
REPORT
1
Purpose and function of notes to financial statement
The purpose of the notes to the financial statement is to provide the additional
information to the user of the financial statement of any firm which are important to
completely understand the financial report of the firm (Cheung & Lau, 2016).
While, the function of this is to help the reader of the statement to understand how the
company arrived at its financial statement figures. It functions as a supplement with the
objective providing the clarity related to the financial statement.
Information included in the notes to financial statement
Mainly, the notes to financial statement includes the information about the
followings:-
 The accounting methodologies used while preparing the financial statement,
 The changes in the accounting methodologies from previous accounting periods to the
current accounting period, if any.
 Lastly, the upcoming transactions of the firm that may affect firm’s future
profitability.
Purpose and function of Independent Auditor’s report
The main objective as well as the function of the independent auditor’s report is to
provide the additional assurance to the stakeholders of the firm that the financial statements
are truthful, complete, and accurate and prepared as per the GAAP’s requirements (Salehi &
Shirazi, 2016).
Information included in the Independent Auditor’s report