## SA 710 – Comparative Information
### What Is Comparative Information?
Financial statements typically include figures from the prior period alongside current-period figures so users can assess trends. SA 710 governs how the auditor handles this comparative information.
Two approaches exist:
- Corresponding Figures – Prior-period amounts are an integral part of current-period FS and are read only in relation to current-period figures. The level of detail is dictated by relevance to the current period.
- Comparative Financial Statements – Prior-period FS are presented separately; each period's FS stands independently.
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### Auditor's Procedures on Comparative Information
| Check | What the auditor does |
|---|---|
| Completeness | Verify FS includes all comparative information required by the AFRF |
| Consistency | Confirm comparative amounts agree with amounts disclosed in the prior period |
| Policy alignment | Confirm accounting policies are consistent with the current period |
If a possible misstatement is detected in comparative information during the current audit:
1. Perform additional procedures to obtain sufficient appropriate audit evidence (SAAE).
2. If the prior period was audited by the same auditor, follow SA 560 procedures.
Written Representations (SA 580):
Obtain written representations covering all periods referred to in the auditor's opinion. If a specific prior period is disclosed, obtain a separate written representation for that period.
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### Corresponding Figures – When the Auditor's Opinion Refers to Them
The auditor's opinion ordinarily does not refer to corresponding figures. Exceptions:
Exception 1 – Unresolved prior-period modification
If the prior audit report contained a qualified, adverse, or disclaimer opinion, and the matter remains unresolved, the auditor modifies the current opinion and in the Basis for Modification paragraph either:
- References both current-period and corresponding figures (if effects on current period are material), or
- Explains that the opinion is modified due to comparability impact.
Exception 2 – Material misstatement discovered in prior period (previously unmodified)
If the auditor finds a material misstatement exists in the prior period on which an unmodified report was issued, and the misstatement has not been corrected, the auditor expresses a qualified or adverse opinion on the corresponding figures.
Exception 3 – Prior period FS not audited
State in an Other Matter Paragraph (OMP) that corresponding figures are unaudited. This does not relieve the auditor of the obligation to obtain SAAE that opening balances are free from material misstatement.
Exception 4 – Prior period audited by predecessor auditor
State in OMP:
1. The FS were audited by a predecessor auditor.
2. The type of opinion issued and, if modified, the reasons.
3. The date of the predecessor's report.
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### Situations Involving a Predecessor Auditor
| Situation | Auditor's Action |
|---|---|
| Auditor's opinion on prior period differs from predecessor's opinion | Disclose reason for difference in OMP per SA 706 |
| MM found in prior period – predecessor issued unmodified report | Communicate with TCWG; request predecessor be informed; if predecessor issues a new report on amended FS, current auditor reports only on the current period |
| Prior period FS not audited | State in OMP that corresponding figures are unaudited |