3 Planning preliminary considerations

1.3Opening balances and corresponding figures

For initial engagements, we consider whether sufficient appropriate evidence can be obtained to confirm the client’s opening balances. Specifically, we confirm:	510.3
opening balances do not contain material misstatement affecting the current year’s figures;
appropriate accounting policies have been consistently applied or, when changed, have been properly accounted for and presented.
In order to obtain sufficient appropriate evidence, we will: determine whether last year’s closing balances are correctly brought forward or restated; determine whether the opening balances reflect the application of appropriate accounting policies; perform, either a review of predecessor working papers (if audited previously) (see below); or evaluate whether current year procedures provide sufficient evidence; or specific audit procedures.	510.6
For all clients (including existing ones) we also consider the impact on the current year, of any brought forward unadjusted misstatements.

Regarding corresponding figures (the comparatives), we need to obtain evidence that the accounting policies used for these figures are consistent with the current period or that appropriate adjustments and disclosures have been made if that is not the case. We also ensure that they are in agreement with the previous period's financial statements and free from error in the current period, and that where corresponding figures have been required to be adjusted, appropriate disclosures have been made.	710.7 and A1-1
The consequences of not being able to confirm the opening balances / corresponding figures are explained in chapter 9 (reporting) of this manual.	510.10-13 710.10-19