ISA 510 Initial Audit Engagements – Opening Balances requires auditors to undertake additional audit procedures for confirming opening balances for new audit engagements. In addition, the ISA gives guidance on audit report implications if auditors are unable to confirm opening balances or if they contain misstatements.

Required:

Explain the impact on the audit report if the auditor is unable to confirm the opening balances, or if the opening balances contain misstatements. (2 marks)