The auditor shall determine whether the financial report includes the comparative information required by the applicable financial reporting framework and whether such information is appropriately classified. For this purpose, the auditor shall evaluate whether:

1. The comparative information agrees with the amounts and other disclosures presented in the prior period or, when appropriate, have been restated; and
2. The accounting policies reflected in the comparative information are consistent with those applied in the current period or, if there have been changes in accounting policies, whether those changes have been properly accounted for and adequately presented and disclosed.

If the auditor becomes aware of a possible material misstatement in the comparative information while performing the current period audit, the auditor shall perform such additional audit procedures as are necessary in the circumstances to obtain sufficient appropriate audit evidence to determine whether a material misstatement exists.  If the auditor had audited the prior period’s financial report, the auditor shall also follow the relevant requirements of ASA 560.^[2]  If the prior period financial report is amended, the auditor shall determine that the comparative information agrees with the amended financial report.

As required by ASA 580,^[3] the auditor shall request written representations for all periods referred to in the auditor’s opinion.  The auditor shall also obtain a specific written representation regarding any restatement made to correct a material misstatement in the prior period financial report that affects the comparative information.  (Ref: Para. A1)

Corresponding Figures

When corresponding figures are presented, the auditor’s opinion shall not refer to the corresponding figures except in the circumstances described in paragraphs 11, 12, and 14 of this Auditing Standard.  (Ref: Para. A2)

If the auditor’s report on the prior period, as previously issued, included a qualified opinion, a disclaimer of opinion, or an adverse opinion and the matter which gave rise to the modification is unresolved, the auditor shall modify the auditor’s opinion on the current period’s financial report. In the Basis for Modification paragraph in the auditor’s report, the auditor shall either:

1. Refer to both the current period’s figures and the corresponding figures in the description of the matter giving rise to the modification when the effects or possible effects of the matter on the current period’s figures are material; or
2. In other cases, explain that the audit opinion has been modified because of the effects or possible effects of the unresolved matter on the comparability of the current period’s figures and the corresponding figures.(Ref: Para. A3-A5)

If the auditor obtains audit evidence that a material misstatement exists in the prior period financial report on which an unmodified opinion has been previously issued, and the corresponding figures have not been properly restated or appropriate disclosures have not been made, the auditor shall express a qualified opinion or an adverse opinion in the auditor’s report on the current period financial report, modified with respect to the corresponding figures included therein.  (Ref: Para. A6)

Prior Period Financial Report Audited by a Predecessor Auditor

If the financial report of the prior period was audited by a predecessor auditor and the auditor is not prohibited by law or regulation from referring to the predecessor auditor’s report on the corresponding figures and decides to do so, the auditor shall state in an Other Matter paragraph in the auditor’s report:

1. That the financial report of the prior period was audited by the predecessor auditor;
2. The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and
3. The date of that report. (Ref: Para. A7)

Prior Period Financial Report Not Audited

If the prior period financial report was not audited, the auditor shall state in an Other Matter paragraph in the auditor’s report that the corresponding figures are unaudited.  Such a statement does not, however, relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period’s financial report.^[4]  (Ref: Para. A8)

Comparative Financial Reports

When comparative financial reports are presented, the auditor’s opinion shall refer to each period for which a financial report is presented and on which an audit opinion is expressed. (Ref: Para. A9‑A10)

When reporting on a prior period financial report in connection with the current period’s audit, if the auditor’s opinion on such a prior period financial report differs from the opinion the auditor previously expressed, the auditor shall disclose the substantive reasons for the different opinion in an Other Matter paragraph in accordance with ASA 706.^[5]  (Ref: Para. Aus A8.1, A10)

Prior Period Financial Report Audited by a Predecessor Auditor

If the financial report of the prior period was audited by a predecessor auditor, in addition to expressing an opinion on the current period’s financial report, the auditor shall state in an Other Matter paragraph:

1. that the financial report of the prior period was audited by a predecessor auditor;
2. the type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and
3. the date of that report,

unless the predecessor auditor’s report on the prior period’s financial report is reissued with the financial report.

If the auditor concludes that a material misstatement exists that affects the prior period financial report on which the predecessor auditor had previously reported without modification, the auditor shall communicate the misstatement with the appropriate level of management and, and unless all of those charged with governance are involved in managing the entity,^[6] those charged with governance and request that the predecessor auditor be informed.  If the prior period financial report is amended, and the predecessor auditor agrees to issue a new auditor’s report on the amended financial report of the prior period, the auditor shall report only on the current period.  (Ref: Para. Aus A8.1, Aus A12.1, A13)

Prior Period Financial Report Not Audited

If the prior period financial report was not audited, the auditor shall state in an Other Matter paragraph that the comparative financial report is unaudited.  Such a statement does not, however, relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period’s financial report.^[7] (Ref: Para. A12)