As an auditor, how will you deal with the supplementary information made in relation to inventory in the financial statements for the year ended…

Supplementary Information Presented with the Financial Statements If supplementary information that is not required by the applicable financial reporting framework is: presented with the audited financial statements, the auditor shall evaluate whether, in the auditor's professional judgment, supplementary information is nevertheless an integral part of the financial statements due to its nature or how it is presented. When it is an integral part of the financial statements, the supplementary information shall be covered by the auditor's opinion.not considered an integral part of the audited financial statements, the auditor shall evaluate whether such supplementary information is presented in a way that sufficiently and clearly differentiates it from the audited financial statements. If this is not the case, then the auditor shall ask management to change how the unaudited supplementary information is presented. If management refuses to do so, the auditor shall identify the unaudited supplementary information and explain in the auditor's report that such supplementary information has not been audited. In the case of Retail Stores Limited [RSL], the auditor shall evaluate the nature and presentation of the supplementary inventory disclosures, including the breakdown of inventory categories, aging, geographical segmentation, obsolete and slow-moving items, purchase commitments, impact of inflation or price changes, and seasonality effects, for the year ended 31st March 2024. As per SA700, if these disclosures are considered integral to the financial statements (for example, forming part of the notes to accounts on inventory), they shall be covered by the auditor's opinion. If they are not integral, the auditor must ensure that they are clearly differentiated from the audited financial statements. Where such differentiation is not made and management refuses to revise the presentation, the auditor shall appropriately identify in the audit report that the supplementary information has not been audited and is not covered by the auditor's opinion.