ACCA AAA ^INT Syllabus D. Audit of Historical Financial Information - Initial Engagement - Notes ^{9 / 10}

Opening Balances

Get evidence that:

No misstatements in them
Prior period c/f correctly
Or restated if necessary
Accounting policies consistent
If not then the comparative needs restating and disclosed

Prior Period Not Audited?

Procedures:

Check post Y/E cash for confirming opening receivables / payables
Do stock count and "roll back" to opening balance
Get 3rd party confirmation on other assets and liabilities

Prior period - Different Auditor

Audit procedures:

Review their working papers - for competence and independence
Check FS & audit report for information relevant to opening balances
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"