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| Bangladesh Standard on Audit(BSA-710) |
Bangladesh standard on Audit(BSA-710)? describes in details:
BSA-710: Comparative Information – Corresponding Figures and Comparative Financial Statements is a standard issued by the Institute of Chartered Accountants of Bangladesh (ICAB). It provides guidelines for auditors regarding the treatment and presentation of comparative financial information in the audit.
In short, BSA-710 addresses the following key points:
1.Responsibility of the Auditor:
The auditor's role is to express an opinion on the financial statements, which may include comparative information from previous periods (e.g., corresponding figures or comparative financial statements). The auditor needs to ensure that the comparative information is presented in accordance with the financial reporting framework.
2.Comparative Figures:
When financial statements include comparative figures (e.g., for the prior year), the auditor needs to verify that these figures are consistent with the audited financial statements of the prior period or have been appropriately restated if there were changes or errors.
3.Consistency and Changes:
If the prior period’s financial statements are revised (e.g., due to a correction of errors or changes in accounting policies), the auditor must ensure that the comparative figures are adjusted accordingly, and the impact of these changes is reflected properly.
4.Audit of Prior Period:
If the previous period's financial statements were not audited, or if the prior auditor's report is not available, the auditor may need to express a modified opinion on the current period's financial statements.
5.Documentation:
The auditor must document the procedures performed to audit the comparative information and ensure it complies with the applicable financial reporting framework.
In essence, BSA-710 ensures that comparative financial information presented in the financial statements is accurate, consistent, and aligned with the financial reporting framework, thereby enhancing the reliability of the audit.