Opening Balances—Initial Audit Engagements
AU-C Section 510 *
Opening Balances—Initial Audit
Engagements, Including Reaudit
Source: SAS No. 122.
Effective for audits of ﬁnancial statements for periods ending on or
after December 15, 2012.
Scope of This Section
.01 This section addresses the auditor's responsibilities relating to opening
balances in an initial audit engagement, including a reaudit 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 comparative ﬁnancial statements are presented,
the relevant requirements and guidance for comparative ﬁnancial statements
in section 700, Forming an Opinion and Reporting on Financial Statements,
also apply. Section 300, Planning an Audit, includes additional requirements
and guidance regarding activities prior to starting an initial audit. Section 708,
Consistency of Financial Statements, also applies with respect to the auditor's
evaluation of the consistency of accounting principles between the periods presented and covered by the auditor's opinion. Section 210, Terms of Engagement,
includes requirements and guidance with respect to communications with a
predecessor auditor before accepting an initial audit engagement, including a
.02 This section, with respect to predecessor auditors, does not apply if the
most recent audited ﬁnancial statements are more than one year prior to the
beginning of the earliest period to be audited.
.03 This section is effective for audits of ﬁnancial statements for periods
ending on or after December 15, 2012.
.04 The objective of the auditor, in conducting an initial audit engagement,
including a reaudit engagement, is to obtain sufﬁcient appropriate audit evidence regarding opening balances about whether (Ref: par. .A1)