Section Audit Conclusions and Reporting - ASA 510 - Initial Audit Engagements - Opening Balances - October 2009 - Audit Conclusions and Reporting

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Opening Balances

If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor shall express a qualified opinion or disclaim an opinion on the financial report, as appropriate, in accordance with ASA 705.[5] (Ref: Para. A8)
If the auditor concludes that the opening balances contain a misstatement that materially affects the current period’s financial report, and the effect of the misstatement is not appropriately accounted for or not adequately presented or disclosed, the auditor shall express a qualified opinion or an adverse opinion, as appropriate, in accordance with ASA 705.

Consistency of Accounting Policies

If the auditor concludes that:
1. the current period’s accounting policies are not consistently applied in relation to opening balances in accordance with the applicable financial reporting framework; or
2. a change in accounting policies is not appropriately accounted for or not adequately presented or disclosed in accordance with the applicable financial reporting framework,

the auditor shall express a qualified opinion or an adverse opinion as appropriate in accordance with ASA 705.

Modification to the Opinion in the Predecessor Auditor’s Report

If the predecessor auditor’s opinion regarding the prior period’s financial report included a modification to the auditor’s opinion that remains relevant and material to the current period’s financial report, the auditor shall modify the auditor’s opinion on the current period’s financial report in accordance with ASA 705 and ASA 710. (Ref: Para. A9)

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