Comprehensive Review of Financial Statement Notes and Auditor's Report

This report provides an overview of the purpose and function of notes to financial statements and the independent auditor's report. It explains that the notes to financial statements provide additional information to help users understand a firm's financial report, including accounting methodologies, changes in these methodologies, and upcoming transactions. The report also discusses the objective and function of the independent auditor's report, which is to assure stakeholders that financial statements are truthful, complete, and accurate, and prepared according to GAAP. The report outlines the types of opinions an auditor can provide: unqualified, qualified, adverse, and disclaimer. The assignment is based on the provided annual report brief, which includes the requirements of the SEC, items within the annual report like financial statements, notes to financial statements, and the independent auditor's report. The report also discusses the different audiences who view the annual report, including shareholders, employees, and customers/vendors.

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

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NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S
REPORT
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

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NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S
REPORT
The Independent Auditor’s report usually includes the opinion of the Independent
Auditor regarding the financial statement of the firm. This opinion are mainly four types
those are Unqualified Opinion, Qualified Opinion, Adverse Opinion and Disclaimer Opinion.

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NOTE TO THE FINANCIAL STATEMENT AND INDEPENDENT AUDITORS’S
REPORT
References
Cheung, E., & Lau, J. (2016). Readability of Notes to the Financial Statements and the
Adoption of IFRS. Australian Accounting Review, 26(2), 162-176.
Salehi, M., & Shirazi, M. (2016). Audit committee impact on the quality of financial
reporting and disclosure: Evidence from the tehran stock exchange. Management
Research Review, 39(12), 1639-1662.