The auditor and comparative figures
The auditor's duties for comparative figures under ISA 710, including a prior year that was unaudited, reviewed or audited by another firm.
By Achekam · · 5 min read · For Accountants & audit firms in South Africa, Nigeria, Kenya
Last year's column is the part of the statements the audit team looks at least, because "it was audited last year". Sometimes it was not. The client may have been below the audit threshold and had its statements independently reviewed, or compiled. Another firm may have done the audit. The prior year may even have been audited by your own firm and later found to contain an error. Each case changes what the auditor must do with the comparatives, and some change what the report says.
ISA 710 sets out the auditor's responsibilities for comparative information. Its central idea is simple: the comparatives are part of the statements the auditor reports on, so the auditor needs evidence that they are right, even though the opinion usually refers only to the current year.
Corresponding figures and comparative statements
ISA 710 distinguishes two approaches, and the framework or local practice decides which applies:
- Corresponding figures: the prior period amounts and disclosures are an integral part of the current statements, to be read only with the current figures. The auditor's opinion refers to the current period only. This is the usual approach for statements prepared under IFRS and IFRS for SMEs in South Africa, Nigeria and Kenya.
- Comparative financial statements: the prior period is presented for comparison and the auditor's opinion refers to each period presented.
The rest of this article assumes corresponding figures, which is what most firms in the three countries meet.
Checking that comparatives agree to last year
Whatever their history, ISA 710 requires the auditor to determine whether the statements include the comparative information required by the framework and whether it is appropriately classified. The auditor evaluates whether:
- the comparatives agree with the amounts and disclosures presented in the prior period or, where appropriate, have been restated; and
- the accounting policies reflected in the comparatives are consistent with those applied in the current period, or changes have been properly accounted for and adequately presented and disclosed.
The source to agree to is the signed prior-year statements, not last year's trial balance. In Achekam, comparatives can come from a person's typed figures, from last year's issued statements, or from a prior-year set a person reviews. Staff can upload last year's statements as a PDF, and Achekam reads them into figures that a person reviews and approves for use as comparatives; AI, where available, fills in details such as the entity name, never numbers. When a set is rolled forward to the next year, settings, policies, notes and wording carry over and every figure is rebuilt from the new trial balance, but typed comparatives, adjusting entries and signatures do not carry forward.
For the auditor, the question is which route was used. Comparatives read from the signed prior-year PDF and approved by a person are traceable. Typed comparatives need to be agreed line by line to the signed statements, and the work item should say so. Reclassifications between the prior-year statements and this year's comparative column should be listed and explained.
A prior year that was unaudited or only reviewed
If the prior period statements were not audited, ISA 710 requires the auditor to state in an Other Matter paragraph that the corresponding figures are unaudited. An independent review under ISRE 2400 (Revised), or a compilation under ISRS 4410 (Revised), is not an audit, so for this purpose those figures are unaudited.
The statement in the report does not reduce the auditor's work. The auditor must still obtain sufficient appropriate evidence that the opening balances do not contain misstatements that materially affect the current period, which is the subject of ISA 510 and of opening balances on a first-year audit.
Other matter paragraphs for a predecessor's audit
If the prior period was audited by a predecessor auditor and the auditor is not prohibited by law or regulation from referring to that report, and decides to do so, ISA 710 requires an Other Matter paragraph stating:
- that the prior period statements were audited by a predecessor auditor;
- the type of opinion the predecessor expressed and, if it was modified, the reasons; and
- the date of that report.
If the predecessor's opinion was modified and the matter is unresolved, the current opinion must also be modified in respect of the corresponding figures, even though the opinion refers only to the current period. How Other Matter paragraphs differ from an emphasis of matter is covered in emphasis of matter and other matter paragraphs.
In Achekam, the engagement team drafts the auditor's report on standard ISA 700, 705, 706 and 701 wording, and approval is refused while any bracketed placeholder remains. The predecessor's name is not required, but the type of opinion and the report date are, and a placeholder left for either will stop approval until it is filled in.
Restatements found during the audit
Sometimes the audit reveals that last year's statements were materially misstated. If the prior period was corrected through a proper restatement with adequate disclosure, the auditor evaluates that restatement and its disclosure like any other area. If it was not, and the misstatement remains in the comparatives, ISA 710 requires a qualified or adverse opinion on the current statements in respect of the corresponding figures.
A worked example in words: during this year's audit of inventory, the team finds that last year's closing stock included goods already sold and invoiced before year end. Last year's profit and closing inventory were overstated, and the misstatement was material. The client restates the comparatives and discloses the correction of the prior period error. The team audits the restated figures, agrees the disclosure to the evidence, and considers whether an emphasis of matter paragraph is warranted. Had the client refused, the opinion would have been modified for the corresponding figures.
Record each step of this on the comparatives work item. A step is marked done only with a written response and its documents, or set aside with a reason, and steps are never deleted.
A comparatives checklist
- Confirm whether last year was audited, reviewed, compiled or audited by another firm.
- Agree every comparative to the signed prior-year statements, not to a trial balance.
- List and explain reclassifications.
- Check policies are consistent, or changes properly accounted for.
- Draft the Other Matter paragraph where the standard requires one.
- Evaluate any restatement, or modify the opinion where one is needed but missing.
The full text of ISA 710, alongside ISA 510 and the other auditing standards, is in the IAASB's 2026 Handbook, the download page for the complete ISQMs, ISAs and related pronouncements.
One step before planning
At planning, look at the prior-year report itself, not just the figures. The type of report, who signed it and whether it was modified decide much of the comparative work before the audit has started.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
