PSA-510-Redrafted

PSA-510-Redrafted - surance Standards B Auditing and...

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surance Standards B Philippine Standard on Auditing 510 (Redrafted) INITIAL AUDIT ENGAGEMENTS – OPENING BALANCES Auditing and Assurance Standards Council
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PSA 510 (Redrafted) 1 PHILIPPINE STANDARD ON AUDITING 510 * (REDRAFTED) INITIAL AUDIT ENGAGEMENTS—OPENING BALANCES (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of this PSA. .............................................................................................. 1 Effective Date. ................................................................................................... 2 Objective ............................................................................................................ 3 Definitions ......................................................................................................... 4 Requirements Audit Procedures. ............................................................................................... 5-9 Audit Conclusions and Reporting. ...................................................................... 10-13 Application and Other Explanatory Material Audit Procedures. ............................................................................................... A1-A7 Audit Conclusions and Reporting. ..................................................................... A8-A9 Acknowledgment Appendix: Illustrations of Auditors’ Reports with Modified Opinions Philippine Standard on Auditing (PSA) 510 (Redrafted), “Initial Engagements—Opening Balances” should be read in conjunction with PSA 200 (Revised and Redrafted), “Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Philippine Standards on Auditing.” * [References in this PSA to other PSAs that have not yet been finalized reflect the working titles of those PSAs. The references are indicated in brackets and will be updated when those PSAs are finalized.] [PSA 200 (Revised and Redrafted) was approved by the AASC in October 2008.]
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PSA 510 (Redrafted) 2 Introduction Scope of this PSA 1. This Philippine Standard on Auditing (PSA) deals with the auditor’s responsibilities relating to opening balances when conducting an initial audit engagement. In addition to financial statement amounts, opening balances include matters requiring disclosure that existed at the beginning of the period, such as contingencies and commitments. When the financial statements include comparative financial information, the requirements and guidance in [proposed] PSA 710 (Redrafted) 1 also apply. PSA 300 (Redrafted) 2 includes additional requirements and guidance regarding activities prior to starting an initial audit. Effective Date 2. This PSA is effective for audits of financial statements for periods beginning on or after December 15, 2009. Objective 3. In conducting an initial audit engagement, the objective of the auditor with respect to opening balances is to obtain sufficient appropriate audit evidence about whether: (a) Opening balances contain misstatements that materially affect the current period’s financial statements; and (b) Appropriate accounting policies reflected in the opening balances have been consistently applied in the current period’s financial statements, or changes thereto are properly accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework. Definitions 4. For the purposes of the PSAs, the following terms have the meanings attributed below: (a) Initial audit engagement – An engagement in which either: (i) The financial statements for the prior period were not audited; or (ii) The financial statements for the prior period were audited by a predecessor auditor.
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This note was uploaded on 12/14/2011 for the course ACCO 101 taught by Professor Various during the Spring '11 term at Binghamton.

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PSA-510-Redrafted - surance Standards B Auditing and...

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