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Chapter 123 4

Corresponding figures and comparative

financial statements

ISA 710 Comparative Information – Corresponding Figures and Comparative
Financial Statements provides the following guidance.

5.1 Definitions

Corresponding figures Comparative financial statements

Where preceding period figures are Comparative financial statements where
included as an integral part of the current preceding period amounts are included
period financial statements (i.e. figures for comparison with the current period
shown to the right of the current year (i.e. the prior year's full financial
figures) statements are included within the
current year annual report)

5.2 Auditor objectives

The auditor must ensure that:

Corresponding figures Comparative financial statements

 Corresponding figures have been  Comparative financial statements
correctly reported and appropriately meet the requirements of an
classified. applicable financial reporting
framework.
 Accounting policies are consistently
applied.  Accounting policies are consistently
applied.
 Corresponding figures agree to the
prior period financial statements  Comparative figures agree to the
prior period financial statements

Illustrations and further practice

Now try TYU 1 in Chapter 12

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