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SA710 ,“Comparative Information – Corresponding Figures and Comparative Financial information

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Swati asked over 2 years ago

under sa710 what are the auditors procedures in respect of examination of corresponding figures ?

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3 Answers
Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

--The nature of the comparative information that is presented in an entity’s financial statements depends on the requirements of the applicable financial reporting framework. There are two different broad approaches to the auditor’s reporting responsibilities in respect of such comparative information: corresponding figures and comparative financial statements. The approach to be adopted is often specified by law or regulation but may also be specified in the terms of engagement. . --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 or, when appropriate, have been restated; 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. -- 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 -- If the prior period financial statements are amended, the auditor shall determine that the comparative information agrees with the amended financial statements. --As required by SA 580, the auditor shall request written representations for all periods referred to in the auditor’s opinion. The auditor shall also obtain a specific written representation regarding any restatement made to correct a material misstatement in prior period financial statements that affect the comparative information.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 megha answered over 2 years ago

Hello, ** "AUDITOR’S PROCEDURES IN RESPECT OF EXAMINATION OF CORRESPONDING FIGURES:`" ------------------------------------------------------------------------ ** ------------------------------------------------------------------------ 1. SA 710 “Comparative Information – Corresponding Figure and Comparative Financial Information deals with the auditor’s responsibilities regarding comparative information in an audit of financial statements. 2. The term Corresponding Figures refers to Comparative information where amounts and other disclosures for the prior period, are included as an integral part of current period F.S., and are intended to be read only in relation to the amounts and other disclosures relating to the current period. **3. To examine the corresponding figures, auditor is required to perform the following procedures:** (j) Determine whether F.S. include Comparative information required by FRF, & Whether such information is classified appropriately. (k) Evaluate the following: • Whether the comparative information agrees with the amounts and other disclosures presented in the prior period; and • Whether the accounting policies reflected in the comparative information are consistent with those applied in the current period. • Whether, changes in accounting policies, if any, have been properly accounted for and adequately presented and disclosed. (l) In case, auditor has doubt over existence of Possible Material Misstatement, then auditor is required to perform additional audit procedures to obtain sufficient appropriate audit evidence to determine existence of material misstatement. (m) Obtain Written Representation from management to re-affirm that the Written Representation it previously made with respect to the prior period remain appropriate. Thanks & Regards

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

hi... > Under sa710 what are the auditors procedures in respect of examination of corresponding figures ?> --The nature of the comparative information that is presented in an entity’s financial statements depends on the requirements of the applicable financial reporting framework. There are two different broad approaches to the auditor’s reporting responsibilities in respect of such comparative information: corresponding figures and comparative financial statements. The approach to be adopted is often specified by law or regulation but may also be specified in the terms of engagement. . **--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 or, when appropriate, have been restated; 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. -- 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 -- If the prior period financial statements are amended, the auditor shall determine that the comparative information agrees with the amended financial statements. --As required by SA 580, the auditor shall request written representations for all periods referred to in the auditor’s opinion. The auditor shall also obtain a specific written representation regarding any restatement made to correct a material misstatement in prior period financial statements that affect the comparative information.

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