Ji J a) 1 Vi ge ee ee el A een oa tee) om Fonte Dedre lence F enaeyerents 9 oh STANDARDS ON AUDITING SA 810" “Initial Audit Engagement ~ Opening Balances" ‘Meaning ~ An engagement in which either: ES forthe prior period were SST or FS forthe prior period were ait bY Pees autor ; (i) Objective In conducting initial audit engagement, auditor objective to obtain audit evidence}with respect to OB whether: 5 OB 7 misseerent ‘that materially affect current period F’ cesheflected in OB, cOasisentlV applied in current period FS. or OF, 7 tee) “eli ©) Changes thereto — properly accounted, presented & disclosed as per FRF a eel (ii) _Audit procedures regarding opening Balances > Read recent FS & Predecessor auditors report thereon. > Shall obtain S & A Ault Evidence with respect to OB by (@) Determining prior period closing balance correctly b/f to current period (Or any adjustment disclosed as prior period items in current year P&L (b) Determining OB reflect application of appropriate accounting polici (c) Perform one or more of the following ies (i) Ifprior year FS audited — pieS of Audited FS)including Audit Report EPR RCI GREATS (1. CA eso fest ait pocedurto obtain evidence regarding 0B (f+. 61 faved tein? which exist in current period Gi) > If auditors obtains audit evidence that OB contains misstatemen FS, then communicate the misstatements to appropriate level o For Current Assets & liabilities ~ Audit Evidence can be obtained as part of audit procedure during current period For other Assets & liabilities - Examine records and confirmation from 3" parties for obtaining audit evidence ©0, S10 Gi) Auait Conctusion & reporting (Lbs Podit Roped) > Iaudito(onable to obtain S&A audit evidence regarding OB ~ Qualify/Disctaim > Concludes “(OB soni: misnatemenythat marily ae. FS 6 Accounting polices not »\ (i) Objet consistently applied br change not properly accounted, presented & disclostd> Qualify/Adverse vislalte BY CA ATUL AGARWAL AIR 1 CA FINAL Page 30