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Auditing & Assurance › Audit Report & Opinions

How is a comparative-period issue handled in the auditor's report?

Intermediate

Answer

For corresponding figures (comparatives forming part of the current statements), a matter affecting the prior period may require a qualified or 'except for' modification referring to the effect on comparability, or an Other Matter paragraph if prior figures were audited by a predecessor or unaudited. The approach depends on whether the framework treats comparatives as corresponding figures or comparative financial statements.
Real-world example Because a prior-year misstatement affects the comparatives, the current report includes an appropriate modification or Other Matter reference.

Common follow-ups: Corresponding figures vs comparative statements? | When is an Other Matter paragraph used for comparatives?

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All 19 Audit Report & Opinions questions