ISA 710: Comparative Information

(How to deal with misstatement/scope limitation in last year)

Corresponding Figures
(only relevant amounts/disclsoures are presented)

Modified Opinion given in last year Unmodified opinion given but misstatement identified in corresponding figures

Last Year's Matter Resolved Last Year's Matter Not Resolved Prior period F/S + Audit Prior period F/S + Audit Report NOT amended & re-issued
Report amended & re-issued
(as per ISA 560)

Unmodified Opinion If matter is still relevant to current year: Corresponding Figures Restated Corresponding Figures Not Restated
– Express Modified Opinion.
– Refer to both periods in Basis for Unmodified Opinion
modified Opinion.
(Illustration # 1 of ISA 710) – Unmodified Opinion Modified Opinion
If matter is Not relevant to current year: – Emphasis of Matter Paragraph
– Express Modified Opinion (due to lack of
comparativlity)
(Illustration # 2 of ISA 710)

Initial Audit Comparative Financial Statements

(all information comparable to current period is presented)

Include Other Matter Paragraph in Report,

stating last year audit condcuted by If current opinion is different from last year's opinion
another auditor, type of opinion, date of
opinion, reason for modification (if any).

Prior period audit Prior period audit report &

report & F/S NOT F/S amended and reissued
amended/reissued

– Current auditor shall express

– Current auditor shall report on both period.
– "Other Matter Paragraph" to explain reason
of different opinion.
– Current auditor may refer to adjustment in
audit report.
opinion on current period only.
– No "Other Matter Paragraph"
for initial audit/reason for
different opinion.