HKSA 710 - Comparative Information
1. INTRODUCTION
1.1 Scope of HKSA 710
HKSA 710 deals with the auditor's responsibilities relating to comparative information in an audit of financial statements. When the financial statements of the prior period have been audited by a predecessor auditor or were not audited, the requirements and guidance in HKSA 510 regarding opening balances also apply.
Key Point: HKSA 710 applies specifically to comparative information. For opening balances in initial audit engagements, refer to HKSA 510.
1.2 Nature of Comparative Information
The nature of comparative information presented in an entity's financial statements depends on the requirements of the applicable financial reporting framework. There are two broad approaches:
| Approach | Description | Auditor's Opinion Reference |
|---|---|---|
| ---------- | ------------- | --------------------------- |
| Corresponding Figures | Prior period amounts and disclosures are an integral part of current period financial statements, intended to be read only in relation to current period figures | Opinion refers to current period only |
| Comparative Financial Statements | Prior period amounts and disclosures are included for comparison with current period; if audited, are referred to in auditor's opinion | Opinion refers to each period presented |
Critical Distinction:
- For corresponding figures: The auditor's opinion on the financial statements refers to the current period only
- For comparative financial statements: The auditor's opinion refers to each period for which financial statements are presented
1.3 Effective Date
This HKSA is effective for audits of financial statements for periods beginning on or after 15 December 2009.
2. OBJECTIVES
The objectives of the auditor are:
(a) To obtain sufficient appropriate audit evidence about whether the comparative information included in the financial statements has been presented, in all material respects, in accordance with the requirements for comparative information in the applicable financial reporting framework; and
(b) To report in accordance with the auditor's reporting responsibilities.
3. DEFINITIONS
Comparative information – The amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework.
Corresponding figures – Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period (referred to as "current period figures"). The level of detail presented in the corresponding amounts and disclosures is dictated primarily by its relevance to the current period figures.
Comparative financial statements – Comparative information where amounts and other disclosures for the prior period are included for comparison with the financial statements of the current period but, if audited, are referred to in the auditor's opinion. The level of information included in those comparative financial statements is comparable with that of the financial statements of the current period.
Note: For purposes of this HKSA, references to "prior period" should be read as "prior periods" when the comparative information includes amounts and disclosures for more than one period.
4. REQUIREMENTS - AUDIT PROCEDURES
4.1 Evaluation of Comparative Information (Paragraph 7)
The auditor shall determine whether the financial statements include the comparative information required by the applicable financial reporting framework and whether such information is appropriately classified. For this purpose, the auditor shall evaluate whether:
(a) The comparative information agrees with the amounts and other disclosures presented in the prior period or, when appropriate, have been restated; and
(b) The accounting policies reflected in the comparative information are consistent with those applied in the current period or, if there have been changes in accounting policies, whether those changes have been properly accounted for and adequately presented and disclosed.
4.2 Material Misstatement in Comparative Information (Paragraph 8)
If the auditor becomes aware of a possible material misstatement in the comparative information while performing the current period audit, the auditor shall perform such additional audit procedures as are necessary in the circumstances to obtain sufficient appropriate audit evidence to determine whether a material misstatement exists.
Important: If the auditor had audited the prior period's financial statements, the auditor shall also follow the relevant requirements of HKSA 560 (Subsequent Events).
If the prior period financial statements are amended, the auditor shall determine that the comparative information agrees with the amended financial statements.
4.3 Written Representations (Paragraph 9)
As required by HKSA 580, the auditor shall request written representations for all periods referred to in the auditor's opinion.
The auditor shall also obtain a specific written representation regarding any restatement made to correct a material misstatement in prior period financial statements that affect the comparative information.
Application Guidance (A1):
- For comparative financial statements: Written representations are requested for all periods referred to in the auditor's opinion because management needs to reaffirm that the written representations it previously made with respect to the prior period remain appropriate.
- For corresponding figures: Written representations are requested for the financial statements of the current period only because the auditor's opinion is on those financial statements, which include the corresponding figures.
5. REQUIREMENTS - AUDIT REPORTING
5.1 Corresponding Figures
5.1.1 General Rule - No Reference in Auditor's Opinion (Paragraph 10)
When corresponding figures are presented, the auditor's opinion shall not refer to the corresponding figures except in the circumstances described in paragraphs 11, 12, and 14.
Rationale (A2): The auditor's opinion does not refer to the corresponding figures because the auditor's opinion is on the current period financial statements as a whole, including the corresponding figures.
5.1.2 Prior Period Modification Unresolved (Paragraph 11)
If the auditor's report on the prior period, as previously issued, included a qualified opinion, a disclaimer of opinion, or an adverse opinion and the matter which gave rise to the modification is unresolved, the auditor shall modify the auditor's opinion on the current period's financial statements.
In the Basis for Modification paragraph, the auditor shall either:
(a) Refer to both the current period's figures and the corresponding figures in the description of the matter giving rise to the modification when the effects or possible effects of the matter on the current period's figures are material; or
(b) In other cases, explain that the audit opinion has been modified because of the effects or possible effects of the unresolved matter on the comparability of the current period's figures and the corresponding figures.
Application Guidance (A3-A5):
- When the prior period modification is resolved and properly accounted for or disclosed, the auditor's opinion on the current period need not refer to the previous modification.
- The unresolved matter may not be relevant to current period figures, but a modified opinion may still be required due to effects on comparability.
5.1.3 Misstatement in Prior Period Financial Statements (Paragraph 12)
If the auditor obtains audit evidence that a material misstatement exists in the prior period financial statements on which an unmodified opinion has been previously issued, and the corresponding figures have not been properly restated or appropriate disclosures have not been made, the auditor shall express a qualified opinion or an adverse opinion in the auditor's report on the current period financial statements, modified with respect to the corresponding figures included therein.
Application Guidance (A6): When prior period financial statements that are misstated have not been amended and an auditor's report has not been reissued, but the corresponding figures have been properly restated or appropriate disclosures have been made in the current period financial statements, the auditor's report may include an Emphasis of Matter paragraph.
5.1.4 Prior Period Financial Statements Audited by a Predecessor Auditor (Paragraph 13)
If the financial statements of the prior period were audited by a predecessor auditor and the auditor is not prohibited by law or regulation from referring to the predecessor auditor's report on the corresponding figures and decides to do so, the auditor shall state in an Other Matter paragraph in the auditor's report:
(a) That the financial statements of the prior period were audited by the predecessor auditor;
(b) The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and
(c) The date of that report.
5.1.5 Prior Period Financial Statements Not Audited (Paragraph 14)
If the prior period financial statements were not audited, the auditor shall state in an Other Matter paragraph in the auditor's report that the corresponding figures are unaudited.
Important: Such a statement does not relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial statements (HKSA 510, paragraph 6).
Application Guidance (A8): If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor is required by HKSA 705 (Revised) to express a qualified opinion or disclaim an opinion on the financial statements, as appropriate.
5.2 Comparative Financial Statements
5.2.1 General Rule - Reference in Auditor's Opinion (Paragraph 15)
When comparative financial statements are presented, the auditor's opinion shall refer to each period for which financial statements are presented and on which an audit opinion is expressed.
Application Guidance (A9-A10):
- Because the auditor's report on comparative financial statements applies to the financial statements for each of the periods presented, the auditor may express a qualified opinion or an adverse opinion, disclaim an opinion, or include an Emphasis of Matter paragraph with respect to one or more periods, while expressing a different auditor's opinion on the financial statements of the other period.
5.2.2 Opinion Different from Previous Opinion (Paragraph 16)
When reporting on prior period financial statements in connection with the current period's audit, if the auditor's opinion on such prior period financial statements differs from the opinion the auditor previously expressed, the auditor shall disclose the substantive reasons for the different opinion in an Other Matter paragraph in accordance with HKSA 706 (Revised).
Application Guidance (A11): When reporting on the prior period financial statements in connection with the current period's audit, the opinion expressed on the prior period financial statements may be different from the opinion previously expressed if the auditor becomes aware of circumstances or events that materially affect the financial statements of a prior period during the course of the audit of the current period.
5.2.3 Prior Period Financial Statements Audited by a Predecessor Auditor (Paragraph 17-18)
Paragraph 17: If the financial statements of the prior period were audited by a predecessor auditor, in addition to expressing an opinion on the current period's financial statements, the auditor shall state in an Other Matter paragraph:
(a) That the financial statements of the prior period were audited by a predecessor auditor;
(b) The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and
(c) The date of that report,
Unless the predecessor auditor's report on the prior period's financial statements is reissued with the financial statements.
Paragraph 18: If the auditor concludes that a material misstatement exists that affects the prior period financial statements on which the predecessor auditor had previously reported without modification, the auditor shall:
- Communicate the misstatement with the appropriate level of management and, unless all of those charged with governance are involved in managing the entity, those charged with governance
- Request that the predecessor auditor be informed
If the prior period financial statements are amended, and the predecessor auditor agrees to issue a new auditor's report on the amended financial statements of the prior period, the auditor shall report only on the current period.
Application Guidance (A12): The predecessor auditor may be unable or unwilling to reissue the auditor's report on the prior period financial statements. An Other Matter paragraph may indicate that the predecessor auditor reported on the financial statements of the prior period before amendment.
5.2.4 Prior Period Financial Statements Not Audited (Paragraph 19)
If the prior period financial statements were not audited, the auditor shall state in an Other Matter paragraph that the comparative financial statements are unaudited.
Important: Such a statement does not relieve the auditor of the requirement to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial statements (HKSA 510, paragraph 6).
Application Guidance (A13): Same as A8 - if unable to obtain sufficient appropriate audit evidence regarding opening balances, the auditor is required by HKSA 705 (Revised) to express a qualified opinion or disclaim an opinion.
6. CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
As of January 2024, this HKSA conforms with International Standard on Auditing (ISA) 710, Comparative Information Corresponding Figures and Comparative Financial Statements. Compliance with the requirements of this HKSA ensures compliance with ISA 710.
7. ADDITIONAL LOCAL GUIDANCE - HONG KONG (APPENDIX 2)
In Hong Kong, the corresponding figures method of presentation is used:
(a) Financial statements of companies incorporated under the provisions of the Companies Ordinance are required to disclose comparative amounts as required under the applicable accounting standards.
(b) Appendix 16 to the Main Board Rules and Chapter 18.07(5) of the GEM Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Ltd. require financial statements of listed issuers to include comparative figures for the balance sheet, income statement, cash flow statement and statement of changes in equity for the corresponding previous period.
(c) "Comparative figures" referred to by the Main Board Rules and GEM Rules refers to the corresponding figures as described in this HKSA.
Important: The auditor's consideration of comparative financial statements as described in paragraphs 3(b), 15-19 and A9-A13 is, therefore, not generally applicable to an audit performed on a Hong Kong incorporated company's annual statutory financial statements in accordance with HKSAs.
8. ILLUSTRATIONS OF AUDITOR'S REPORTS (APPENDIX 1)
The HKSA provides four illustrations of independent auditor's reports:
| Illustration | Type | Key Circumstances |
|---|---|---|
| -------------- | ------ | ------------------- |
| 1 | Corresponding Figures | Prior period qualified opinion, matter unresolved, effects on current period material |
| 2 | Corresponding Figures | Prior period qualified opinion, matter unresolved, effects on current period immaterial but comparability affected |
| 3 | Corresponding Figures | Prior period audited by predecessor auditor, unmodified opinion |
| 4 | Comparative Financial Statements | Prior period qualified opinion, matter unresolved, effects material to both periods |
9. KEY TAKEAWAYS SUMMARY
| Aspect | Corresponding Figures | Comparative Financial Statements |
|---|---|---|
| -------- | ---------------------- | ---------------------------------- |
| Auditor's Opinion | Refers to current period only | Refers to each period presented |
| Written Representations | Current period only (plus specific representation for restatements) | All periods referred to in opinion |
| Prior Period Modification Unresolved | Modify current period opinion | Modify opinion for each affected period |
| Predecessor Auditor | Other Matter paragraph | Other Matter paragraph (unless report reissued) |
| Prior Period Not Audited | Other Matter - unaudited | Other Matter - unaudited |
| Hong Kong Application | Generally applicable | Not generally applicable for HK incorporated companies' statutory audits |
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繁體中文部分
1. 引言
1.1 香港審計準則第710號的範圍
香港審計準則第710號處理核數師在審計財務報表時有關比較信息的責任。當前期財務報表已由前任核數師審計或未經審計時，香港審計準則第510號有關期初結餘的規定和指引亦適用。
關鍵點： 香港審計準則第710號特別適用於比較信息。對於首次審計業務的期初結餘，應參考香港審計準則第510號。
1.2 比較信息的性質
實體財務報表中呈列的比較信息的性質取決於適用的財務報告框架的要求。有兩種不同的廣泛方法：
| 方法 | 描述 | 核數師意見的參考 |
|---|---|---|
| ------ | ------ | ----------------- |
| 對應數字 | 前期金額及披露作為本期財務報表的組成部分，旨在僅與本期數字相關聯閱讀 | 意見僅參考本期 |
| 比較財務報表 | 前期金額及披露納入與本期財務報表作比較；如經審計，則在核數師意見中提及 | 意見參考每個呈列期間 |
關鍵區別：
- 對於對應數字：核數師對財務報表的意見僅參考本期
- 對於比較財務報表：核數師的意見參考每個呈列財務報表的期間
1.3 生效日期
本準則適用於2009年12月15日或之後開始期間的財務報表審計。
2. 目標
核數師的目標是：
(a) 獲取充分適當的審計證據，證明財務報表中包含的比較信息是否在所有重大方面按照適用的財務報告框架中有關比較信息的要求呈列；及
(b) 按照核數師的報告責任進行報告。
3. 定義
比較信息 – 根據適用的財務報告框架，在財務報表中就一個或多個前期納入的金額及披露。
對應數字 – 比較信息，其中前期的金額及其他披露作為本期財務報表的組成部分納入，並旨在僅與本期相關的金額及其他披露（稱為「本期數字」）關聯閱讀。對應金額及披露中呈列的詳細程度主要取決於其與本期數字的相關性。
比較財務報表 – 比較信息，其中前期的金額及其他披露納入與本期財務報表作比較，但如經審計，則在核數師意見中提及。該等比較財務報表中包含的信息水平與本期財務報表的信息水平相當。
注意： 就本準則而言，當比較信息包括多於一個期間的金額及披露時，對「前期」的引用應理解為「多個前期」。
4. 規定 - 審計程序
4.1 比較信息的評估（第7段）
核數師應確定財務報表是否包括適用的財務報告框架所要求的比較信息，以及該等信息是否得到適當分類。為此，核數師應評估：
(a) 比較信息是否與前期呈列的金額及其他披露一致，或在適當情況下已重新表述；及
(b) 比較信息中反映的會計政策是否與本期應用的會計政策一致，或者如果會計政策發生變更，該等變更是否已適當核算並充分呈列及披露。
4.2 比較信息中的重大錯誤陳述（第8段）
如果核數師在執行本期審計時發現比較信息可能存在重大錯誤陳述，核數師應執行在該等情況下必要的額外審計程序，以獲取充分適當的審計證據，確定是否存在重大錯誤陳述。
重要事項： 如果核數師已審計了前期的財務報表，核數師還應遵循香港審計準則第560號（期後事項）的相關規定。
如果前期財務報表已修訂，核數師應確定比較信息與經修訂的財務報表一致。
4.3 書面陳述（第9段）
根據香港審計準則第580號的要求，核數師應就核數師意見中提及的所有期間要求書面陳述。
核數師還應就為更正影響比較信息的前期財務報表中的重大錯誤陳述而作出的任何重列，獲取具體的書面陳述。
應用指引（A1）：
- 對於比較財務報表：書面陳述須就核數師意見中提及的所有期間要求，因為管理層需要重申其先前就前期作出的書面陳述仍然適當。
- 對於對應數字：書面陳述僅就本期的財務報表要求，因為核數師的意見是針對包括對應數字的該等財務報表。
5. 規定 - 審計報告
5.1 對應數字
5.1.1 一般規則 - 核數師意見中不提及（第10段）
當呈列對應數字時，核數師的意見不應提及對應數字，除非在第11、12及14段所述的情況下。
理由（A2）： 核數師的意見不提及對應數字，因為核數師的意見是針對本期財務報表整體，包括對應數字。
5.1.2 前期保留意見未解決（第11段）
如果先前發出的前期核數師報告包含保留意見、否定意見或無法表示意見，且導致該修訂的事項仍未解決，核數師應修訂對本期財務報表的意見。
在「保留意見的基礎」段落中，核數師應：
(a) 當該事項對本期數字的影響或可能影響屬重大時，在描述導致修訂的事項時同時提及本期數字及對應數字；或
(b) 在其他情況下，解釋審計意見已因未解決事項對本期數字與對應數字可比性的影響或可能影響而作出修訂。
應用指引（A3-A5）：
- 當前期修訂已解決並已適當核算或披露時，對本期的核數師意見無需提及先前的修訂。
- 未解決事項可能與本期數字無關，但由於對可比性的影響，仍可能需要發表修訂意見。
5.1.3 前期財務報表中的錯誤陳述（第12段）
如果核數師獲取審計證據，證明先前已發表無保留意見的前期財務報表存在重大錯誤陳述，且對應數字未經適當重列或未作出適當披露，核數師應在對本期財務報表的核數報告中發表保留意見或否定意見，並就其中包含的對應數字作出修訂。
應用指引（A6）： 當存在錯誤陳述的前期財務報表未經修訂且核數師報告未重新發出，但對應數字已在本期財務報表中適當重列或已作出適當披露時，核數師報告可包括強調事項段落。
5.1.4 前期財務報表由前任核數師審計（第13段）
如果前期財務報表由前任核數師審計，且法律或法規不禁止核數師參照前任核數師對對應數字的報告，而核數師決定這樣做，核數師應在核數報告中的「其他事項」段落中說明：
(a) 前期財務報表由前任核數師審計；
(b) 前任核數師發表的意見類型，以及如果意見經修訂，其原因；及
(c) 該報告的日期。
5.1.5 前期財務報表未經審計（第14段）
如果前期財務報表未經審計，核數師應在核數報告中的「其他事項」段落中說明對應數字未經審計。
重要事項： 該陳述並不免除核數師獲取充分適當審計證據，證明期初結餘不存在對本期財務報表產生重大影響的錯誤陳述的規定（香港審計準則第510號第6段）。
應用指引（A8）： 如果核數師無法獲取有關期初結餘的充分適當審計證據，核數師須根據香港審計準則第705號（經修訂）酌情發表保留意見或無法表示意見。
5.2 比較財務報表
5.2.1 一般規則 - 核數師意見中提及（第15段）
當呈列比較財務報表時，核數師的意見應提及每個呈列財務報表且已發表審計意見的期間。
應用指引（A9-A10）：
- 由於比較財務報表的核數師報告適用於每個呈列期間的財務報表，核數師可就一個或多個期間發表保留意見或否定意見、無法表示意見，或包括強調事項段落，同時對另一期間的財務報表發表不同的核數師意見。
5.2.2 意見與先前意見不同（第16段）
當就本期審計報告前期財務報表時，如果核數師對該等前期財務報表的意見與核數師先前發表的意見不同，核數師應根據香港審計準則第706號（經修訂）在「其他事項」段落中披露不同意見的實質原因。
應用指引（A11）： 當就本期審計報告前期財務報表時，如果核數師在本期審計過程中獲悉對前期財務報表產生重大影響的情況或事件，則對前期財務報表發表的意見可能與先前發表的意見不同。
5.2.3 前期財務報表由前任核數師審計（第17-18段）
第17段： 如果前期財務報表由前任核數師審計，除對本期財務報表發表意見外，核數師應在「其他事項」段落中說明：
(a) 前期財務報表由前任核數師審計；
(b) 前任核數師發表的意見類型，以及如果意見經修訂，其原因；及
(c) 該報告的日期，
除非前任核數師對前期財務報表的報告隨財務報表重新發出。
第18段： 如果核數師得出結論，認為存在影響前期財務報表（前任核數師先前已對其發表無保留意見）的重大錯誤陳述，核數師應：
- 向適當層級的管理層傳達該錯誤陳述，並除非所有治理層參與管理實體，否則向治理層傳達
- 要求通知前任核數師
如果前期財務報表已修訂，且前任核數師同意對經修訂的前期財務報表發出新的核數師報告，核數師應僅報告本期。
應用指引（A12）： 前任核數師可能無法或不願意重新發出對前期財務報表的核數師報告。核數師報告的「其他事項」段落可表明前任核數師在修訂前已對前期財務報表作出報告。
5.2.4 前期財務報表未經審計（第19段）
如果前期財務報表未經審計，核數師應在「其他事項」段落中說明比較財務報表未經審計。
重要事項： 該陳述並不免除核數師獲取充分適當審計證據，證明期初結餘不存在對本期財務報表產生重大影響的錯誤陳述的規定（香港審計準則第510號第6段）。
應用指引（A13）： 與A8相同 - 如果無法獲取有關期初結餘的充分適當審計證據，核數師須根據香港審計準則第705號（經修訂）發表保留意見或無法表示意見。
6. 與國際審計準則的一致性
截至2024年1月，本香港審計準則與國際審計準則第710號「比較信息 - 對應數字及比較財務報表」一致。遵守本準則的規定即確保遵守國際審計準則第710號。
7. 香港附加本地指引（附錄2）
在香港，採用對應數字的呈列方法：
(a) 根據公司條例成立的公司的財務報表須按照適用的會計準則的要求披露比較金額。
(b) 主板規則附錄16及GEM規則第18.07(5)章要求上市發行人的財務報表包括相應前一期的資產負債表、收益表、現金流量表及權益變動表的比較數字。
(c) 主板規則及GEM規則所指的「比較數字」指本準則所述的對應數字。
重要事項： 因此，核數師對比較財務報表的考慮（如第3(b)、15-19及A9-A13段所述）一般不適用於根據香港審計準則對香港註冊成立的公司的年度法定財務報表進行的審計。
8. 核數師報告示例（附錄1）
本準則提供了四份獨立核數師報告示例：
| 示例 | 類型 | 主要情況 |
|---|---|---|
| ------ | ------ | --------- |
| 1 | 對應數字 | 前期保留意見，事項未解決，對本期影響重大 |
| 2 | 對應數字 | 前期保留意見，事項未解決，對本期影響不重大但可比性受影響 |
| 3 | 對應數字 | 前期由前任核數師審計，無保留意見 |
| 4 | 比較財務報表 | 前期保留意見，事項未解決，對兩個期間影響均重大 |
9. 關鍵要點總結
| 方面 | 對應數字 | 比較財務報表 |
|---|---|---|
| ------ | --------- | ------------- |
| 核數師意見 | 僅參考本期 | 參考每個呈列期間 |
| 書面陳述 | 僅本期（加上重列的具體陳述） | 意見中提及的所有期間 |
| 前期修訂未解決 | 修訂本期意見 | 修訂每個受影響期間的意見 |
| 前任核數師 | 其他事項段落 | 其他事項段落（除非報告重新發出） |
| 前期未經審計 | 其他事項 - 未經審計 | 其他事項 - 未經審計 |
| 香港應用 | 一般適用 | 一般不適用於香港註冊成立公司的法定審計 |
50 Multiple Choice Questions
Q1. What is the scope of HKSA 710?
A. It deals with the auditor's responsibilities relating to comparative information in an audit of financial statements
B. It deals with opening balances in initial audit engagements
C. It deals with subsequent events
D. It deals with going concern assessments
Answer: A
Q2. When the financial statements of the prior period have been audited by a predecessor auditor, which other HKSA also applies regarding opening balances?
A. HKSA 700
B. HKSA 510
C. HKSA 560
D. HKSA 580
Answer: B
Q3. For corresponding figures, the auditor's opinion on the financial statements refers to:
A. Both the current period and prior period
B. The current period only
C. The prior period only
D. Each period for which financial statements are presented
Answer: B
Q4. For comparative financial statements, the auditor's opinion refers to:
A. The current period only
B. The prior period only
C. Each period for which financial statements are presented
D. Neither period
Answer: C
Q5. What is the effective date of HKSA 710?
A. Periods beginning on or after 15 December 2005
B. Periods beginning on or after 15 December 2009
C. Periods ending on or after 15 December 2009
D. Periods beginning on or after 1 January 2010
Answer: B
Q6. Which of the following is NOT an objective of the auditor under HKSA 710?
A. To obtain sufficient appropriate audit evidence about whether comparative information has been presented in accordance with the applicable financial reporting framework
B. To report in accordance with the auditor's reporting responsibilities
C. To determine the entity's going concern status
D. To obtain sufficient appropriate audit evidence about whether comparative information has been presented in all material respects
Answer: C
Q7. Comparative information is defined as:
A. Only the amounts included in the financial statements for the prior period
B. Only the disclosures included in the financial statements for the prior period
C. The amounts and disclosures included in the financial statements in respect of one or more prior periods
D. The amounts and disclosures for the current period only
Answer: C
Q8. In corresponding figures, the level of detail presented is dictated primarily by:
A. The requirements of the Companies Ordinance
B. The predecessor auditor's report
C. Its relevance to the current period figures
D. The prior period financial statements
Answer: C
Q9. In comparative financial statements, the level of information included is:
A. Less detailed than the current period financial statements
B. More detailed than the current period financial statements
C. Comparable with that of the financial statements of the current period
D. Dictated by the predecessor auditor
Answer: C
Q10. When evaluating comparative information, the auditor shall determine whether:
A. The comparative information agrees with the amounts and other disclosures presented in the prior period
B. The comparative information has been approved by the board of directors
C. The comparative information has been audited by a predecessor auditor
D. The comparative information includes all prior periods
Answer: A
Q11. If there have been changes in accounting policies, the auditor shall evaluate whether:
A. The changes have been approved by shareholders
B. The changes have been properly accounted for and adequately presented and disclosed
C. The changes are retroactive
D. The changes are prospective only
Answer: B
Q12. If the auditor becomes aware of a possible material misstatement in the comparative information, the auditor shall:
A. Immediately issue a modified opinion
B. Perform additional audit procedures as necessary
C. Ignore it if it relates to the prior period
D. Report it to the regulatory authorities
Answer: B
Q13. If the prior period financial statements are amended, the auditor shall determine that:
A. The comparative information agrees with the amended financial statements
B. A new auditor is appointed
C. The predecessor auditor reissues the report
D. The amendments are disclosed in the current period only
Answer: A
Q14. Written representations shall be requested for:
A. The current period only in all cases
B. All periods referred to in the auditor's opinion
C. The prior period only
D. Only when there are restatements
Answer: B
Q15. For corresponding figures, written representations are requested for:
A. The current period only
B. Both current and prior periods
C. The prior period only
D. All periods presented
Answer: A
Q16. For comparative financial statements, written representations are requested for:
A. The current period only
B. All periods referred to in the auditor's opinion
C. The prior period only
D. Only the most recent period
Answer: B
Q17. When corresponding figures are presented, the auditor's opinion shall not refer to the corresponding figures except:
A. When the auditor chooses to do so
B. In the circumstances described in paragraphs 11, 12, and 14
C. When the client requests it
D. When the prior period was audited by a different auditor
Answer: B
Q18. If the prior period auditor's report included a qualified opinion and the matter is unresolved, the auditor shall:
A. Issue an unmodified opinion on the current period
B. Modify the auditor's opinion on the current period's financial statements
C. Disclaim an opinion on the current period
D. Issue a separate report on the prior period
Answer: B
Q19. When the prior period modification is unresolved and the effects on current period figures are material, the auditor shall:
A. Refer only to current period figures in the Basis for Modification paragraph
B. Refer to both current period's figures and corresponding figures in the description
C. Issue a disclaimer of opinion
D. Include an Emphasis of Matter paragraph
Answer: B
Q20. When the prior period modification is unresolved and the effects on current period figures are immaterial but comparability is affected, the auditor shall:
A. Issue an unmodified opinion
B. Explain that the audit opinion has been modified because of effects on comparability
C. Issue a disclaimer of opinion
D. Include an Emphasis of Matter paragraph
Answer: B
Q21. If a material misstatement exists in prior period financial statements with a previously issued unmodified opinion, and corresponding figures have not been properly restated, the auditor shall:
A. Issue an unmodified opinion
B. Express a qualified opinion or an adverse opinion
C. Disclaim an opinion
D. Issue a separate report on the prior period
Answer: B
Q22. When prior period financial statements are misstated but corresponding figures have been properly restated in the current period, the auditor's report may include:
A. A qualified opinion
B. An Emphasis of Matter paragraph
C. A disclaimer of opinion
D. An adverse opinion
Answer: B
Q23. If the prior period was audited by a predecessor auditor and the auditor decides to refer to the predecessor's report, the auditor shall state in an Other Matter paragraph:
A. Only that the prior period was audited by a predecessor auditor
B. The type of opinion expressed and the date of the report
C. That the financial statements of the prior period were audited by the predecessor auditor, the type of opinion, and the date of that report
D. Only the date of the predecessor's report
Answer: C
Q24. If the prior period financial statements were not audited, the auditor shall:
A. Refuse to audit the current period
B. State in an Other Matter paragraph that the corresponding figures are unaudited
C. Audit the prior period as well
D. Issue a disclaimer of opinion
Answer: B
Q25. The statement that corresponding figures are unaudited:
A. Relieves the auditor of all responsibilities regarding opening balances
B. Does not relieve the auditor of the requirement to obtain sufficient appropriate audit evidence regarding opening balances
C. Means the auditor must audit the prior period
D. Requires a qualified opinion
Answer: B
Q26. When comparative financial statements are presented, the auditor's opinion shall refer to:
A. The current period only
B. Each period for which financial statements are presented and on which an audit opinion is expressed
C. The prior period only
D. The most recent period only
Answer: B
Q27. When reporting on comparative financial statements, the auditor may express:
A. The same opinion for all periods presented
B. A qualified opinion for one period and an unmodified opinion for another period
C. Only unmodified opinions
D. Only modified opinions
Answer: B
Q28. If the auditor's opinion on prior period financial statements differs from the opinion previously expressed, the auditor shall:
A. Ignore the difference
B. Disclose the substantive reasons in an Other Matter paragraph
C. Issue a new report on the prior period
D. Resign from the engagement
Answer: B
Q29. When prior period financial statements were audited by a predecessor auditor and comparative financial statements are presented, the auditor shall state in an Other Matter paragraph:
A. Only that the prior period was audited by a predecessor auditor
B. The type of opinion, reasons for modification if applicable, and date of the predecessor's report
C. Only the date of the predecessor's report
D. Only the type of opinion expressed
Answer: B
Q30. The requirement to state information about the predecessor auditor in an Other Matter paragraph does not apply when:
A. The predecessor auditor's report is reissued with the financial statements
B. The predecessor auditor refuses to cooperate
C. The client objects
D. The auditor decides not to include it
Answer: A
Q31. If a material misstatement exists in prior period financial statements reported on by a predecessor auditor without modification, the auditor shall:
A. Ignore it as it relates to the prior period
B. Communicate the misstatement to management and those charged with governance
C. Issue a qualified opinion on the current period
D. Resign from the engagement
Answer: B
Q32. If the prior period financial statements are amended and the predecessor auditor agrees to issue a new report, the current auditor shall:
A. Report on both periods
B. Report only on the current period
C. Report only on the prior period
D. Issue a combined report
Answer: B
Q33. In Hong Kong, which method of presentation is used for comparative information?
A. Comparative financial statements
B. Corresponding figures
C. Both methods are equally used
D. Neither method is used
Answer: B
Q34. The auditor's consideration of comparative financial statements is generally not applicable to:
A. Listed companies in Hong Kong
B. Hong Kong incorporated company's annual statutory financial statements
C. Companies using HKFRS
D. Companies with foreign operations
Answer: B
Q35. HKSA 710 conforms with which International Standard on Auditing?
A. ISA 700
B. ISA 710
C. ISA 705
D. ISA 706
Answer: B
Q36. When the auditor's report on the prior period included a modified opinion and the matter is resolved and properly accounted for, the auditor's opinion on the current period:
A. Must still refer to the previous modification
B. Need not refer to the previous modification
C. Must include an Emphasis of Matter paragraph
D. Must be a qualified opinion
Answer: B
Q37. For corresponding figures, the auditor's opinion is on:
A. The prior period financial statements only
B. The current period financial statements as a whole, including the corresponding figures
C. Each period separately
D. The corresponding figures only
Answer: B
Q38. If the auditor is unable to obtain sufficient appropriate audit evidence regarding opening balances, the auditor is required by HKSA 705 (Revised) to:
A. Issue an unmodified opinion
B. Express a qualified opinion or disclaim an opinion
C. Issue an adverse opinion only
D. Include an Emphasis of Matter paragraph
Answer: B
Q39. In Hong Kong, financial statements of companies incorporated under the Companies Ordinance are required to disclose comparative amounts as required under:
A. The Companies Ordinance only
B. Applicable accounting standards
C. The Listing Rules only
D. The predecessor auditor's report
Answer: B
Q40. The term "comparative figures" referred to by the Main Board Rules and GEM Rules refers to:
A. Comparative financial statements as described in HKSA 710
B. Corresponding figures as described in HKSA 710
C. Both corresponding figures and comparative financial statements
D. Neither corresponding figures nor comparative financial statements
Answer: B
Q41. When the prior period financial statements were not audited and the auditor cannot obtain sufficient appropriate audit evidence regarding opening balances, the auditor may determine this to be:
A. A key audit matter in accordance with HKSA 701
B. A basis for an unmodified opinion
C. Not relevant to the audit
D. A matter for the predecessor auditor
Answer: A
Q42. In the case of corresponding figures, a specific written representation is required regarding:
A. All comparative information
B. Any restatement made to correct a material misstatement in prior period financial statements
C. The opening balances only
D. The accounting policies only
Answer: B
Q43. For comparative financial statements, written representations are requested for all periods referred to in the auditor's opinion because:
A. The auditor's opinion is on the current period only
B. Management needs to reaffirm that previously made written representations remain appropriate
C. The prior period was audited by a predecessor auditor
D. The financial statements are unaudited
Answer: B
Q44. If the prior period financial statements were audited by a predecessor auditor and the auditor is prohibited by law from referring to the predecessor's report, the auditor shall:
A. Still include an Other Matter paragraph
B. Not include an Other Matter paragraph referring to the predecessor's report
C. Issue a qualified opinion
D. Resign from the engagement
Answer: B
Q45. When the auditor's report on the prior period included a qualified opinion and the matter is unresolved but not relevant to current period figures, a modified opinion may still be required because of:
A. The materiality of the matter
B. The effects on the comparability of current and corresponding figures
C. The requirements of the Companies Ordinance
D. The predecessor auditor's report
Answer: B
Q46. In Illustration 1 of Appendix 1, the auditor's report on the prior period included:
A. An unmodified opinion
B. A qualified opinion
C. A disclaimer of opinion
D. An adverse opinion
Answer: B
Q47. In Illustration 2 of Appendix 1, the effects of the unresolved matter on current period figures are:
A. Material
B. Immaterial
C. Both material and immaterial
D. Not determinable
Answer: B
Q48. In Illustration 3 of Appendix 1, the prior period financial statements were audited by:
A. The same auditor
B. A predecessor auditor
C. No auditor
D. A government auditor
Answer: B
Q49. In Illustration 4 of Appendix 1, the auditor is required to report on:
A. The current period only
B. Both the current period and prior period financial statements
C. The prior period only
D. Neither period
Answer: B
Q50. According to HKSA 710, references to "prior period" should be read as "prior periods" when:
A. The comparative information includes amounts and disclosures for more than one period
B. The prior period was audited by a predecessor auditor
C. The financial statements are comparative financial statements
D. The entity is a listed company
Answer: A
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