IntroductionIntroduction

Introduction

4 The purpose of this Auditing Standard is to establish mandatory requirements and provide explanatory guidance on the auditor’s responsibilities regarding comparatives. It does not deal with situations when a summarised financial report is presented with the audited financial report (for explanatory guidance see ASA 720 Other Information in Documents Containing Audited Financial Reports, and ASA 800 The Auditor’s Report on Special Purpose Audit Engagements).

5 The auditor shall determine whether the comparatives comply in all material respects with the financial reporting framework applicable to the financial report being audited.

6 The existence of differences in financial reporting frameworks between countries results in comparative financial information being presented differently in each framework. Comparatives in the financial report, for example, may present amounts (such as financial position, results of operations, cash flows) and appropriate disclosures of an entity for more than one period, depending on the framework. The framework and method of presentation referred to in this Auditing Standard defines:

“comparatives” as corresponding figures, where amounts and other disclosures for the preceding period are included as part of the current period financial report, and are intended to be read in relation to the amounts and other disclosures relating to the current period (referred to as “current period figures” for the purpose of this Auditing Standard). These corresponding figures are not presented as a complete financial report capable of standing alone, but are an integral part of the current period financial report intended to be read only in relationship to the current period figures.

7 Comparatives are presented in compliance with the applicable financial reporting framework and the auditor’s report only refers to the financial report of the current period.