ISA 510 Audit Opening Balance 1.How do you audit opening balance for initial engagement? 2.Why incoming auditor auditor outgoing auditor working papers? 3. What are the objective of audit opening balance? Read the full story in our blog https://lnkd.in/g9PDfxcU Source : MIA Accountant Today ISA 510 Opening Balances dated 14 January 2020 https://lnkd.in/gvEZnMsT 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru 𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients Website www.ktp.com.my Instagram https://bit.ly/3jZuZuI Linkedin https://bit.ly/3sapf4l Telegram http://bit.ly/3ptmlpn 𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐁𝐨𝐨𝐤-𝐊𝐞𝐞𝐩𝐢𝐧𝐠/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource book keeping and payroll services to clients Website www.thks.com.my Facebook https://bit.ly/3nQ98rs

1. KTP & Company PLT (AF1308)(LLP0002159-LCA)
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2. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The responsibilities and requirements to
perform an audit of opening balances of
the financial statements by a new
auditor is outlined in the International
Standard on Auditing (ISA) 510 Initial
Audit Engagements – Opening Balances.
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3. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The objective of the auditor with
respect to opening balances (OB) is to
obtain sufficient appropriate audit
evidence about whether:
1. The OB contain misstatements that
materially affect the current period’s
financial statements
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4. KTP & Company PLT (AF1308)(LLP0002159-LCA)
2. Appropriate accounting policies
reflected in the OB that have been
consistently applied in the current
period’s financial statements
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5. KTP & Company PLT (AF1308)(LLP0002159-LCA)
2…. or changes thereto are
appropriately accounted for and
adequately presented and disclosed in
accordance with the applicable
financial reporting framework.
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6. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The auditor shall perform such
additional audit procedures as are
appropriate in the circumstances to
determine the effect on the current
period’s financial statements if the OB
contain misstatements that could
materially affect the current period’s
financial statements.
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7. KTP & Company PLT (AF1308)(LLP0002159-LCA)
General Audit Procedures
The auditor shall read the most recent
financial statements including
disclosures
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8. KTP & Company PLT (AF1308)(LLP0002159-LCA)
General Audit Procedures
The auditor shall obtain sufficient
appropriate audit evidence to
determine whether the prior period’s
closing balances have been correctly
brought forward to the current period or,
when appropriate, have been restated;
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9. KTP & Company PLT (AF1308)(LLP0002159-LCA)
General Audit Procedures
The auditor shall obtain sufficient
appropriate audit evidence to determine
whether the opening balances reflect
the application of appropriate
accounting policies;
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10. KTP & Company PLT (AF1308)(LLP0002159-LCA)
General Audit Procedures
The auditor shall obtain sufficient
appropriate audit evidence to review
the predecessor auditor’s working
papers to obtain evidence regarding the
opening balances
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11. KTP & Company PLT (AF1308)(LLP0002159-LCA)
General Audit Procedures
The auditor shall obtain sufficient
appropriate audit evidence to perform
specific audit procedures to obtain
evidence regarding the opening
balances
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12. KTP & Company PLT (AF1308)(LLP0002159-LCA)
What can be done if the predecessor
auditor does not, or cannot, provide
access to the audit working papers for
the previous reporting period?
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13. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The successor auditor should evaluate
whether audit procedures performed in
the current period provide evidence
relevant to the opening balances, or
perform specific audit procedures to
obtain evidence regarding the opening
balances, and propose opening balance
adjustments, if necessary.
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14. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The auditor might want to recompute
the allowance for doubtful debts
accounts at the end of the prior period
and compare original and recomputed
numbers for consistency and
reasonableness
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15. KTP & Company PLT (AF1308)(LLP0002159-LCA)
The auditor might want to review the
property and equipment and its
depreciation schedules for the prior
year to compare them to the opening
balances, as well as review the
consistency of depreciation policies.
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16. KTP & Company PLT (AF1308)(LLP0002159-LCA)
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