FS notes & reconciliation — the 24-note narrative
The FS statements show the numbers; the notes explain them. AuditPro auto-seeds 24 IFRS-aligned notes per engagement (compliance, policies, judgements, then one note per material FS line). The auditor edits the wording and reconciles each note back to a workpaper.
The 24 default notes
| # | Note title | IFRS / IAS |
|---|---|---|
| 1 | Corporate information | — |
| 2 | Statement of compliance | IAS 1.16 |
| 3 | Basis of preparation | IAS 1 |
| 4 | Significant accounting policies | IAS 8 |
| 5 | Critical estimates & judgements | IAS 1.122 |
| 6 | Revenue | IFRS 15 |
| 7 | Cost of sales | IAS 1 |
| 8 | Operating expenses | IAS 1 |
| 9 | Finance income / costs | IFRS 9 |
| 10 | Income tax | IAS 12 |
| 11 | Property, plant and equipment | IAS 16 |
| 12 | Right-of-use assets & lease liabilities | IFRS 16 |
| 13 | Inventories | IAS 2 |
| 14 | Trade and other receivables | IFRS 9 |
| 15 | Cash and cash equivalents | IAS 7 |
| 16 | Share capital and reserves | CCL Art. 132 |
| 17 | Trade and other payables | IFRS 9 |
| 18 | Loans and borrowings | IFRS 9 |
| 19 | Provisions (incl. EOSB) | IAS 19, IAS 37 |
| 20 | Related-party transactions | IAS 24 |
| 21 | Financial-risk management | IFRS 7 |
| 22 | Earnings per share | IAS 33 (if listed) |
| 23 | Contingencies & commitments | IAS 37 |
| 24 | Subsequent events | IAS 10 |
Step-by-step
Open FS Notes editor
From the job → FS Statements → Notes. 24 cards, one per note. Each card shows: title, IFRS reference, status pill (draft / reviewed / finalised), word count.
Click into a note → edit
Inline rich-text editor. The auto-seeded body is firm-template wording; you fill in the entity-specific numbers and disclosures. The system pulls live numbers from the Adjusted TB so that note tables auto-populate (e.g. PPE movement schedule).
Reconcile to FS line
Each note has a "Reconcile" panel — type a control total, system compares with the linked FS line, shows ✓ or ✗. Notes that don't reconcile are flagged before sign-off.
Cross-link to workpaper
Note 11 PPE → links to E-100 PPE workpaper. Note 14 Receivables → C-100. The link is bidirectional — click from the note to jump to the workpaper.
Mark reviewed → finalised
Manager reviews each note, ticks "reviewed". Partner reviews, ticks "finalised". Status pill turns green. Locked from edits.
Note 11 PPE — worked example
Note 11 — Property, plant and equipment
| Buildings | Plant | Vehicles | Furniture | Total | |
|---|---|---|---|---|---|
| Cost | |||||
| At 1 January 2025 | 980,000 | 420,000 | 85,000 | 42,000 | 1,527,000 |
| Additions | — | 85,000 | 12,000 | 3,500 | 100,500 |
| Disposals | — | (15,000) | (8,000) | — | (23,000) |
| At 31 December 2025 | 980,000 | 490,000 | 89,000 | 45,500 | 1,604,500 |
| Accumulated depreciation | |||||
| At 1 January 2025 | 98,000 | 168,000 | 59,500 | 21,300 | 346,800 |
| Charge for the year | 19,600 | 42,000 | 12,400 | 5,400 | 79,400 |
| At 31 December 2025 | 117,600 | 208,400 | 62,400 | 26,700 | 426,200 |
| Carrying amount 31 Dec 2025 | 862,400 | 281,600 | 26,600 | 18,800 | 1,189,400 |
Open FS Notes → Note 11 PPE. The movement table is pre-populated from the Adjusted TB. Edit the policy paragraph (depreciation rate, useful lives) to match the entity's accounting policy. Mark reviewed. Watch the status pill turn yellow → green when partner finalises.
Note 20 Related-party transactions is the most common audit failure point. Don't auto-fill — interview the client, get a related-party register, cross-check shareholder + director records. Missing a related-party disclosure is a textbook ground for opinion modification.
Note 4 Accounting policies has a firm-wide library of pre-vetted policy paragraphs (revenue, leases, ECL, going concern, etc.). Pick the relevant ones for your client and AuditPro inserts them with consistent wording across the firm. Saves hours and ensures policy consistency.
What's next
24 notes drafted, reconciled, finalised. Statements + notes form the FS package. Next, the partner runs the IFRS-disclosure-compliance check — does this FS pack disclose every IFRS-mandated item? Phase 9 covers the disclosure compliance dashboard.