Appendix No. 14
to the Order of the Ministry of Finance of the Russian Federation of November 9, 2016 No. 207n
The International Standard of Audit (ISA) 710 "Comparative information - comparable indicators and the comparative financial reporting" should be considered together with MCA 200 "Main objectives of the independent auditor and carrying out audit according to International standards of audit".
1. This International Standard of Audit (ISA) establishes the auditor's obligations in case of financial records audit in connection with comparative information. If financial records audit for previous period was not booked or carried out by the prior auditor, also the requirements and instructions MCA 510 <1> concerning remaining balance at the beginning of the period are applied.
<1> MCA 510 "The audit engagements performed for the first time: remaining balance at the beginning of the period".
2. Nature of the comparative information provided in the financial reporting of the organization depends on requirements of the applicable concept of preparation of the financial reporting. There are two most widespread approaches to responsibility of the auditor on creation of the conclusion concerning such comparative information: consideration of comparable indicators and consideration of the comparative financial reporting. Application of certain approach is often offered by the law or the regulation, but can be also determined and by conditions of task.
3. Basic distinctions between these approaches from the point of view of preparation of audit opinion consist in the following:
(a) by consideration of comparable indicators the auditor opinion on the financial reporting concerns only current period; while
(b) by consideration of the comparative financial reporting the auditor opinion concerns each of the periods for which the financial reporting is provided.
In this standard of the requirement to creation of audit opinion are considered separately for each approach.
5. The purpose of the auditor consists in that:
(a) obtain sufficient competent auditor evidences of the fact that the comparative information is reflected in this financial reporting in all essential aspects according to requirements of the applicable concept of preparation of the financial reporting to reflection of comparative information;
(b) provide the conclusion according to the auditor's obligations on provision of the conclusions.
6. For the purposes of International standards of audit the following terms have the stated below values:
(a) comparative information - numerical indicators and disclosure information provided in the financial reporting for one or several previous periods according to the applicable concept of preparation of the financial reporting;
(b) comparable indicators - comparative information in that case when numerical indicators and other disclosed information for previous period are included in the financial reporting for current period as its integral part and are intended for consideration only in connection with consideration of numerical indicators and disclosure of other information for current period (called by "indicators of current period"). Extent of disaggregation of the corresponding provided numerical indicators and disclosed information is determined first of all as far as they are important for consideration of indicators of current period;
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