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Comparative Financial Statements
“When comparative financial statements are presented, the auditor’s opinion shall refer to each period for which financial statements are presented and on which an audit opinion is expressed.”“When reporting on prior period financial statements in connection with the current period’s audit, if the auditor’s opinion on such prior period financial statements differs from the opinion the auditor previously expressed, the
auditor shall disclose the substantive reasons for the different opinion in an Other Matter paragraph in accordance with ISA 706.”My question is the auditor will also give an opinion on the prior period FS/ Comparative FS along with current year FS?
Only in so far as they provide comparative information – last year’s opinion was on last year’s financial statements – so only if that opinion has changed will it be referred to as “other matter” (i.e. NOT in current year opinion para).
You should appreciate that comparative financial statements are very very rare in practice – comparatives are usually shown as corresponding amounts (i.e. in a column next to the current year figures in the SoFP, SoPL, etc).
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