ISA 510 — Initial Audit Engagements—Opening Balances
ISA 510 is an international pronouncement addressing opening balances when carrying out an initial audit engagement. For an initial audit, it addresses obtaining evidence that opening balances do not contain misstatements materially affecting the current financial statements, and considering accounting policies and prior-period information. Prior-year audit work may assist but is assessed for suitability.
Worked example
A new auditor obtains evidence about opening inventory and considers the predecessor auditor’s report where relevant.
Common mistake
A predecessor’s unmodified opinion does not automatically establish sufficient evidence about opening balances.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |