# SA 710 — Comparative Information
## What is Comparative Information?
Comparative information consists of amounts and disclosures included in financial statements (FS) in respect of one or more prior periods as required by the Applicable Financial Reporting Framework (AFRF).
## Two Broad Approaches
The approach to be adopted is specified by Law & Regulation (L&R) and may also be set out in the engagement terms.
| Aspect | Corresponding Figures | Comparative FS |
|---|---|---|
| Nature | Prior period amounts/disclosures are an integral part of current period FS | Prior period amounts/disclosures are presented for comparison with current FS |
| Presentation | Not presented as complete FS | Level of info comparable with current period FS |
| Auditor's opinion | Refers to current period only | Refers to each period for which FS are presented |
## Audit Procedures Regarding Comparative Information
### 1. Perform Specific Procedures
To determine whether FS include comparative info as per AFRF, the auditor must ensure:
- Comparative info agrees with amounts/disclosures presented in the prior period
- Accounting policies are consistent with those applied in the current period
- If changes exist, whether such changes are properly disclosed
### 2. Evaluating Impact on FS
If the auditor becomes aware of a possible Material Misstatement (MM) in comparative info:
- Perform procedures to obtain Sufficient Appropriate Audit Evidence (SAAE)
- If the auditor had audited the prior period's FS, follow requirements of SA 560 (Subsequent Events)
### 3. Written Representations (WR)
- Request WR for all periods referred to in the opinion
- Obtain specific WR for any prior period item separately disclosed in current year's P/L
## Audit Reporting
### A. For Corresponding Figures
Auditor's opinion shall not refer to corresponding figures, EXCEPT:
(i) Prior report had modified opinion — matter unresolved: Modify opinion on current FS. In the Basis for Modification paragraph, either:
- Refer to both current figures and corresponding figures if effects on current figures are material; OR
- Otherwise, explain that opinion has been modified because of effects of the unresolved matter on comparability of current and corresponding figures
(ii) Evidence of MM in prior period FS (where unmodified opinion was previously issued): Verify whether the misstatement has been dealt with per AFRF; if not, express qualified or adverse opinion on current FS w.r.t. corresponding figures.
### B. For Comparative FS
- Auditor's opinion refers to each period presented
- If opinion on prior period FS differs from previously expressed opinion → disclose reasons in an Other Matter (OM) paragraph
- If MM exists where predecessor auditor reported unmodified opinion → communicate with Mgt & TCWG and request that predecessor auditor be informed
- If prior period FS are amended and predecessor agrees to issue a new report → auditor reports only on current period
## Reporting Treatment Common to Both Approaches
If prior period FS were audited by predecessor auditor (and L&R permits referring to predecessor's report), auditor shall state in his report:
- That prior period FS were audited by predecessor auditor
- Type of opinion expressed by predecessor auditor
- Date of that audit report
If prior period FS were not audited, report this in an OM paragraph stating comparative info is unaudited. However, this disclosure does NOT relieve the auditor from obtaining SAAE that opening balances do not contain MM affecting current period's FS.