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The presentation of financial statements in conformity with generally accepted accounting principles includes adequate disclosure of material matters. These matters relate to the form, arrangement, and content of the financial statements and their appended notes, including, for example, the terminology used, the amount of detail given, the classification of items in the statements, and the bases of amounts set forth. An independent auditor considers whether a particular matter should be disclosed in light of the circumstances and facts of which he is aware at the time.
Auditing -- Standards -- United States; Disclosure in accounting; Financial statements -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Adequacy of disclosure in financial statements; Statement on auditing standards, 032" (1980). Statements on Auditing Standards. 31.