“Quick reference guide for SA 710 Comparative Information, Corresponding Figures & Comparative Financial Statements. Learn about scope, objectives, definitions, audit procedures, and reporting requirements. Essential insights for auditors and financial professionals.”
Quick Reference for Standards on Auditing- SA 710 Comparative Information, Corresponding Figures & Comparative Financial Statements
Scope of the SA: Deals with auditor’s responsibilities regarding comparative information in an audit of financial statements.
Overall Objectives of the Auditor: To obtain sufficient appropriate audit evidence about whether the comparative information included in the financial statements has been presented, in all material respects, in accordance with the requirements for comparative information in the applicable financial reporting framework; & to report in accordance with the auditor’s reporting responsibilities.
Comparative Information means “The amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework”.
Corresponding Figures means “Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period (referred to as “current period figures”). The level of detail presented in the corresponding amounts and disclosures is dictated primarily by its relevance to the current period figures“.
Comparative Financial Statements means “Comparative information where amounts and other disclosures for the prior period are included for comparison with the financial statements of the current period but, if audited, are referred to in the auditor’s opinion. The level of information included in those comparative financial statements is comparable with that of the financial statements of the current period”.
Audit Procedure:
1. Assess the Consistency of accounting policies used.
2. Check Comparative figures with amount and disclosure in prior period.
3. Determine that FS Contains appropriately classified comparative information.
4. Evaluate the impact of possible misstatement in comparative information on FS.
5. Obtain the Written Representation.
Audit Reporting:
1. With Reference to corresponding figures, auditor opinion should refer in his opinion only when
a) if previous AR is other than unqualified.
b) Prior period misstatement not addressed.
c) if prior period FS unaudited.
2. With Reference to comparative figures
a) the auditor’s opinion shall refer to each period for which FS are presented and on which audit opinion is expressed.
b) difference in opinion on previously issued FS.
c) if previous FS audited by some other auditor, mention the same in AR.
d) If prior period FS unaudited, mention the same in the AR.
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