OPening balances

This topic contains 2 replies, has 3 voices, and was last updated by Avatar of MikeLittle MikeLittle 2 years, 4 months ago. This post has been viewed 26 times

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  • Avatar of salu007
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    Hi Sir,Hope you are doing fine.

    If the previous Years Statements were not audited will it be ok to include an EOM paragraph in the Audit report.regarding the opening balances

    • Topics: 5
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    Hello Salu:

    I think OM para would be suitable because EOM is used when auditor wants to draw the attention of user to the Matter appropriately presented in the financial statement.
    OM is used to highlight auditors responsibilities. As you have to include the following : prior FSt were not audited but this would not relieve the auditor from his responsibility to confirm the opening balance!

    Hope this helps!

    Hope this helps!

    Avatar of MikeLittle
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    But, in the process of confirming the opening balances, this year’s auditor also needs to confirm the comparative income statement.

    Even if the opening balances are confirmed, the auditor this year should include “uncertainty” surrounding the comparatives – inability to obtain sufficient appropriate audit evidence to confirm reliability of last year’s income statement

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