For new clients (identified through Scoping):
- Agree opening balances on all accounts to prior year financial statements.
- Ensure consistent application of accounting policies and where different, ensure that the changes are properly accounted for and correctly presented and disclosed.
- In order to gain sufficient, appropriate audit evidence over opening balances, consider the following:
- The need to review the predecessor auditor’s working papers;
- An evaluation of whether audit procedures performed in the current period provide evidence relevant to the opening balances; or
- The performance of specific audit procedures to obtain evidence regarding the opening balances. (See Opening Balances Checklist and also A4 and A5 from redrafted ISA 510)