Scope of application
- This Auditing Standard specifies and guides the auditor's responsibility and corporate auditing (hereinafter referred to as an "auditor") relative to the opening balance in the first year audit. In addition to the financial statements, the opening balance also includes disclosures that existed at the beginning of the period, such as assets, contingent liabilities and commitments. Where comparative information is available in the financial statements, the requirements and guidelines of VAS 710 also apply. VAS 300 provides additional guidance and guidance on activities prior to the commencement of the first year audit.
- The auditor and the firm shall comply with the requirements and instructions in this Standard during the audit of the first year financial statements.
The entity (the customer) and the parties using the results of the audit are required to have the necessary understanding of the requirements and guidelines of this International Standard in order to coordinate work with the auditor and the firm. as well as when dealing with relationships related to financial statements audited by a new firm in the first year.
Target
- When performing the first year audit, the target of the auditor and auditing firms for opening balances is the collection of sufficient appropriate audit evidence that:
- Does the opening balance contain errors that materially affect the current financial statements;
- Whether the appropriate accounting policies reflected in the opening balance are consistently applied in the current financial statements, or the changes to accounting policies are handled in a way. is appropriate or presented and disclosed in full in accordance with the applicable financial reporting framework.
See full text Auditing Standard No. 510
