Page 146 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Points of SA 260 are covered in Chapter 2, Please refer that, we have just included additional points
highlighted here.

(CNO-SA260.280) Communication with Subgroup/Committee
Subgroup Communication: If the auditor communicates with a subgroup of those charged with governance,
such as an audit committee or an individual, they must also determine if it is necessary to communicate with the
governing body as a whole.

(CNO-SA260.300) When All of Those Charged with Governance Are Involved in Managing the Entity
Overlap: In certain situations, all individuals responsible for governing an entity also manage it, such as in a
small business where the owner is the sole manager and there are no other governance roles.
No need to re-communicate: When matters required by this Standard are communicated to individuals with
management responsibilities who also have governance responsibilities, there is no need to re-communicate the
same matters to these individuals in their governance role.
Verification: The auditor must ensure that communication with individuals with management responsibilities
adequately informs all those with whom the auditor would otherwise communicate in their governance capacity.

SA 710 Comparative Information-Corresponding Figures and Comparative Financial Statements

(CNO - SA 710.020) Reporting Requirements in Case of Comparative Information
Approaches: SA 710 Comparative Information-Corresponding Figures and Comparative Financial Statements
outlines two main approaches for comparative information: corresponding figures and comparative financial
statements.
Differences: The primary distinction in audit reporting between these approaches is that for corresponding
figures, the auditor's opinion applies only to the current period, while for comparative financial statements, the
auditor's opinion applies to each period for which financial statements are presented.
Objectives: The auditor's objectives are to gather sufficient appropriate audit evidence to verify if the
comparative information in the financial statements complies with the requirements of the applicable financial
reporting framework, and to report in line with their reporting responsibilities.

(CNO - SA 710.040) Audit Procedures for Comparative Information:

Basic Audit Procedures:
The auditor shall determine whether the financial statements include the comparative information required by
the applicable financial reporting framework and whether such information is appropriately classified. For this
purpose, the auditor shall evaluate whether:
(a) The comparative information agrees with the amounts and other disclosures presented in the prior period;
and
(b) The accounting policies reflected in the comparative information are consistent with those applied in the
current period or, if there have been changes in accounting policies, whether those changes have been properly
accounted for and adequately presented and disclosed.
Additional Audit Procedures:
If the auditor becomes aware of a possible material misstatement in the comparative information while
performing the current period audit, the auditor shall perform such additional audit procedures as are necessary
in the circumstances to obtain sufficient appropriate audit evidence to determine whether a material
misstatement exists. If the auditor had audited the prior period’s financial statements, the auditor shall also follow
the relevant requirements of SA 560.
Written Representations:

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