Page 247 - CA Inter Audit PARAM

CA Ravi Taori
The comparative information agrees with the amounts and other disclosures presented in
the prior period; and
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.

QNO Reference to Comparatives in Corresponding Figures Approach Old Course -- (N18M/N19E/ M22E/
710.05 Bhaskar CNO - SA710.050 N22M)
When corresponding figures are presented, the auditor’s opinion shall not refer to the corresponding
figures except in some circumstances. Explain those circumstances.
OR
The senior member of the firm Kaur & Associates, Chartered Accountants, informed to its auditing staff that
at the time of audit reporting regarding corresponding figures, when corresponding figures are presented,
the auditor's opinion shall not refer to the corresponding figures except in specified circumstances. What
are those exceptional circumstances?
Answer ➢ When corresponding figures are presented, the auditor’s opinion shall not refer to the
corresponding figures except in the following circumstances.
If the auditor’s report on the prior period, as previously issued, included a qualified opinion,
a disclaimer of opinion, or an adverse opinion and the matter which gave rise to the
modification is unresolved, the auditor shall modify the auditor’s opinion on the current
period’s financial statements. In the Basis for Modification paragraph in the auditor’s report,
the auditor shall either:
• Refer to both the current period’s figures and the corresponding figures in the
description of the matter giving rise to the modification when the effects or possible
effects of the matter on the current period’s figures are material; or
• In other cases, explain that the audit opinion has been modified because of the
effects or possible effects of the unresolved matter on the comparability of the
current period’s figures and the corresponding figures.

➢ If the auditor obtains audit evidence that a material misstatement exists in the prior period financial
statements on which an unmodified opinion has been previously issued, the auditor shall verify
whether the misstatement has been dealt with as required under the applicable financial reporting
framework and, if that is not the case, the auditor shall express a qualified opinion or an adverse
opinion in the auditor’s report on the current period financial statements, modified with respect to
corresponding figures included.

➢ Prior Period Financial Statements Not Audited-
If the prior period financial statements were not audited, the auditor shall state in an Other Matter
paragraph in the auditor’s report that the corresponding figures are unaudited. Such a statement
does not, however, relieve the auditor of the requirement to obtain sufficient appropriate audit
evidence that the opening balances do not contain misstatements that materially affect the current
period’s financial statements.

QNO Content of OMP when Audit is done by predecessor Auditor Old Course -- (N22M/N22E)
710.06 Bhaskar CNO - SA710.050
NG Ltd. appointed CA N as the statutory auditor for the F.Y. 2021-2022. Previous year's auditor gave a
qualified opinion on the Comparative Financial Statements for the year ended 31.03.2021. What will be the
reporting responsibility casted on CA N when he forms an opinion and prepares audit report on the
Comparative Financial Statements for the F.Y. 2021-2022?

OR
If the financial statements of the prior period were audited by a predecessor auditor, in addition to
expressing an opinion on the current period’s financial statements, what is required to be stated
by the auditor in an Other Matter paragraph.
Answer Prior Period Financial Statements Audited by a Predecessor Auditor: As per SA 710, if the financial
statements of the prior period were audited by a predecessor auditor, in addition to expressing an opinion on

www.auditguru.in 8.17