Document ID: chunk:federal_register_of_legislation:F2023C00329:reg:16:p4
Version: federal_register_of_legislation:F2023C00329
Segment Type: reg
Provision Reference: reg 16 (pt 4/23)
Character Range: 16120–19147

corresponding figures in the description of the matter giving rise to the modification when the effects or possible effects of the matter on the current period's figures are material; or

(b)                In other cases, explain that the audit opinion has been modified because of the effects or possible effects of the unresolved matter on the comparability of the current period's figures and the corresponding figures.(Ref: Para. A3‑A5)

12.               If the auditor obtains audit evidence that a material misstatement exists in the prior period financial report on which an unmodified opinion has been previously issued, and the corresponding figures have not been properly restated or appropriate disclosures have not been made, the auditor shall express a qualified opinion or an adverse opinion in the auditor's report on the current period financial report, modified with respect to the corresponding figures included therein.  (Ref: Para. A6)

Prior Period Financial Report Audited by a Predecessor Auditor

13.               If the financial report of the prior period was audited by a predecessor auditor and the auditor is not prohibited by law or regulation from referring to the predecessor auditor's report on the corresponding figures and decides to do so, the auditor shall state in an Other Matter paragraph in the auditor's report:

(a)                That the financial report of the prior period was audited by the predecessor auditor;

(b)                The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and

(c)                The date of that report.  (Ref: Para. A7)

Prior Period Financial Report Not Audited

14.               If the prior period financial report was not audited, the auditor shall state in an Other Matter paragraph in the auditor's report that the corresponding figures are unaudited.  Such a statement does not, however, relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial report.[4]  (Ref: Para. A8)

Comparative Financial Reports

15.               When comparative financial reports are presented, the auditor's opinion shall refer to each period for which a financial report is presented and on which an audit opinion is expressed. (Ref: Para. A9‑A10)

16.               When reporting on a prior period financial report in connection with the current period's audit, if the auditor's opinion on such a prior period financial report 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 ASA 706.[5]  (Ref: Para. Aus A8.1, A10)

Prior Period Financial Report Audited by a Predecessor Auditor

17.               If the financial report of the prior period was audited by a predecessor auditor, in addition to expressing an opinion on