The Auditor’s ResponsibilitiesThe Auditor’s Responsibilities

The Auditor’s Responsibilities

8 The auditor shall evaluate the risk that the comparatives may be materially misstated, and obtain sufficient appropriate audit evidence for that purpose and that the comparatives meet the requirements of the applicable financial reporting framework.

9 The extent of audit procedures performed on the comparatives is significantly less than for the audit of the current period figures and is ordinarily limited to ensuring that the comparatives have been correctly reported and are appropriately classified. For example, this involves the auditor evaluating whether:

(a) accounting policies used for the comparatives are consistent with those of the current period or whether appropriate adjustments and/or disclosures have been made; and

(b) comparatives agree with the amounts and other disclosures presented in the prior period or whether appropriate adjustments and/or disclosures have been made.

10 When the financial report of the prior period has been audited by another auditor, under paragraph 8 of this Auditing Standard, the incoming auditor needs to evaluate whether the comparatives are materially misstated. The auditor also follows the explanatory guidance in ASA 510 Initial Engagements - Opening Balances.

11 Under paragraph 8 of this Auditing Standard, the auditor needs to follow the mandatory requirements and explanatory guidance in ASA 510, when the financial report of the prior period is not audited.

12 If the auditor becomes aware of a possible material misstatement in the comparatives when performing the current period audit, the auditor ordinarily performs such additional audit procedures as are appropriate in the circumstances.