Final answer:
A statement of the auditor's independence is not typically required in auditor's reports for financial statements prepared on a non-GAAP basis, as opposed to the inclusion of an opinion on the financial statements, the basis for preparation, and disclosure of accounting policies.
Step-by-step explanation:
An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include various elements.
However, one element that is not typically required in such reports is a statement of the auditor's independence.
While auditors might voluntarily include a statement about their independence within the report for transparency and trust, it is not a requirement for reports prepared on a basis other than GAAP.
Below are the other elements that are generally included:
- Opinion on the financial statements
- Basis for the preparation of the financial statements
- Disclosure of significant accounting policies
These components assist users in understanding the financial information and the context in which it was prepared, thus helping in distinguishing fact from opinion in the presented financial data.