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ISA 710 (REDRAFTED) COMPARATIVE INFORMATION — CORRESPONDING FIGURES AND COMPARATIVE FINANCIAL STATEMENTS
Many jurisdictions have size limits that decipher whether or not an entity’s financial statements must be subject to statutory audit, or whether the entity’s management can take advantage of exemptions that may be available which enable the entity to become exempt from statutory audit. In many cases these size limits can be breached, resulting in the entity having to be mandatorily subjected to statutory audit.
ISA 710 (redrafted) outlines the auditor’s responsibilities when dealing with comparative information of such entities.
Where the prior period’s financial statements were not audited the auditor needs to obtain sufficient appropriate audit evidence concerning the prior period’s financial statements.
ISA 710 contains the following definitions:
Comparative Information
The amounts and disclosures in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework.
[ISA710.6 (a)]
Corresponding Figures
Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period (referred to as ‘current period figures’). The level of detail ...
