## SA 710: Comparatives — Corresponding Figures

### What Are Corresponding Figures?

Corresponding figures are integral parts of the current period financial statements, read only in relation to current period amounts and disclosures.

> Critical rule: The auditor's opinion covers the current period only — not the prior period.

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## Auditor's Two-Stage Checklist

### Stage 1 — DETERMINE

Check	Action
Does the FRF require comparative information?	Verify it is included
Is comparative information appropriately classified?	Verify presentation
Are changes to comparatives adequately disclosed?	Verify disclosures

### Stage 2 — EVALUATE

Check	Action
Do comparative figures agree with prior period amounts and disclosures?	Trace and reconcile
Are accounting policies consistent between periods?	Compare and document

### If Possible Misstatement Found in Comparative Information

Perform additional procedures to obtain SAAE to confirm or dispel the possibility
If auditor had also audited prior period FS → SA 560 (Subsequent Events) applies
Obtain Written Representations (WR) per SA 580 for:
All periods referred to in the audit opinion
Specific WR for any prior period disclosed separately in the current year P&L

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## Audit Reporting on Corresponding Figures

Default rule: The audit opinion does not refer to corresponding figures.

Exceptions — modify/refer when:

Situation	Required Action
Prior period report was modified AND the subject matter is still unresolved	Modify the current audit report as well
Auditor obtains evidence of material misstatement in prior period on which an unmodified opinion was issued, and it has not been corrected per the FRF	Express Qualified (QO) or Adverse Opinion (AO) on current FS with respect to corresponding figures

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## Special Situations

### Prior Period FS Audited by Another (Predecessor) Auditor

If law/regulation permits reference to predecessor's report, include an Other Matter paragraph containing:

Prior period FS were audited by another auditor
Type of opinion expressed by predecessor (and reasons for modification, if any)
Date of that report

### Prior Period FS Are Unaudited

1. Include an Other Matters paragraph stating that corresponding figures are unaudited

2. Important: This does NOT relieve the auditor from obtaining SAAE that opening balances do not contain misstatements that could affect current period FS

Worked example

### Example 1

Scenario — Misstatement Found in Prior Period: The auditor of ABC Ltd's FY2025 FS discovers evidence that the FY2024 trade receivables balance (on which an unmodified opinion was issued) was overstated due to fraud — and the amount has not been restated or corrected per the applicable FRF. The auditor must express a Qualified or Adverse Opinion on the FY2025 FS specifically with respect to the corresponding figures for receivables.

### Example 2

Scenario — Unresolved Prior Period Modification: XYZ Ltd's FY2024 FS carried a qualified opinion because inventory valuation was not per Ind AS 2. In FY2025, the same inventory valuation policy continues unchanged. The current auditor must modify the FY2025 audit report as well — the subject matter of the prior modification is still unresolved.

### Example 3

Scenario — Unaudited Comparatives: A company presents FY2024 comparatives that were never audited. The auditor includes an Other Matters paragraph disclosing this. However, the auditor still independently verifies that opening balances for FY2025 (closing balances of FY2024) do not contain misstatements that could affect the current year FS. The disclaimer paragraph does not reduce this obligation.

### Example 4

Scenario — Predecessor Auditor: The FY2024 audit was conducted by a different firm. In FY2025, the new auditor includes an Other Matter paragraph stating: 'The financial statements for the year ended March 31, 2024 were audited by M/s ABC & Co., who expressed an unmodified opinion thereon dated May 15, 2024.'

⚠️ Common exam mistakes

Thinking the audit opinion on current period FS also covers the prior period comparative figures — it does not; corresponding figures are read only in relation to the current period
Forgetting to modify the current year report when a prior period modification is still unresolved — many students assume the issue expires after one year
Assuming the 'prior period unaudited' Other Matters paragraph fully relieves audit responsibility — the auditor must still verify opening balances are free from misstatements affecting the current year
Missing that Written Representations must cover ALL periods referred to in the audit opinion, not just the current year
Overlooking the two-trigger test for modifying the report: (1) prior modification still unresolved, OR (2) newly discovered material misstatement in prior period that has not been corrected

Reference:

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Corresponding Figures — Evaluation, Audit Reporting, and Special Situations

Worked example

⚠️ Common exam mistakes