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Amounts Derived From Financial Statements
Please note here the auditor is interested in preceding year's evidence since1. The Companies Act states such corresponding amounts should be disclosed in respect to every item in a company's balance sheet and loss and profit account for the financial year preceding that to that the balance sheet and loss and profit account relate. IAS 7 needs similar information for the cash flow statement.2. These figures from the opening position from that the present years are derived. The auditor might be assured such the opening figures have been appropriately brought forward.3. Accounting policies must be useful constantly from year to year.4. Corresponding amounts must be displayed and the auditor should seek evidence such they are properly exposed.The auditor is not utilized to express an opinion on the corresponding to figures; however he is responsible for ensuring such they area) The amounts that appear in the previous year's accounts or;b) They have been restated to get comparability and consistency or;c) They have been restated because of a change in accounting policy or the improvement of a fundamental error as required through IAS 8.
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