Initial Engagement

NotesQuizPaper exam

Opening Balances

Get evidence that:

  1. No misstatements in them

  2. Prior period c/f correctly

    Or restated if necessary

  3. Accounting policies consistent

    If not then the comparative needs restating and disclosed

Prior Period Not Audited?

Procedures:

  1. Check post Y/E cash for confirming opening receivables / payables

  2. Do stock count and "roll back" to opening balance

  3. Get 3rd party confirmation on other assets and liabilities

Prior period - Different Auditor

Audit procedures:

  1. Review their working papers - for competence and independence

  2. Check FS & audit report for information relevant to opening balances

  3. If previous report modified - check it has been rectified now

Audit Report Possible Effects

Can't get enough evidence about opening balances? "Except for" or "Disclaimer"
Opening balances or disclosures incorrect "Except for" or "Adverse"
NotesQuizPaper exam