SA 710 Comparative Information explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SA 710 deals with last year's figures shown beside this year's. It says what the auditor checks about them, and how the report changes depending on whether they are corresponding figures, which are part of the current statements, or comparative statements, which are reported on separately.
SA 710, as effective for audits of financial statements for periods beginning on or after 1 April 2011, applies to every audit where comparative information is presented. ICAI may revise standards, so check icai.org for the current text. Comparatives that tie to last year's signed accounts depend on well-kept books of accounts.
Two approaches exist. With corresponding figures, the opinion covers the current period only and does not refer to them (paragraph 10). With comparative financial statements, the opinion refers to each period presented (paragraph 15). In India, the printed text notes that frameworks typically use the corresponding figures approach for general purpose statements. The auditor checks that the comparatives agree with the prior period and policies are consistent, and where the prior year was audited by another auditor or not audited, the report says so in an Other Matter paragraph.
Scope and the two approaches (paragraphs 1-6)
The standard covers comparative information. Where the prior period was audited by a predecessor or not audited, the opening balances requirements of SA 510 also apply (paragraph 1). Law, regulation or the engagement terms often fix the approach (paragraph 2).
| Term (paragraph 6) | Plain meaning |
|---|---|
| Comparative information | Amounts and disclosures for one or more prior periods, as the framework requires |
| Corresponding figures | Prior-period amounts included as an integral part of the current statements, to be read only in relation to current figures; detail is set by relevance to the current period |
| Comparative financial statements | Prior-period amounts included for comparison; if audited, referred to in the opinion; detail is comparable to the current statements |
The essential difference in reporting: with corresponding figures the opinion refers to the current period only, whereas with comparative statements it refers to each period (paragraph 3). A footnote to paragraph 2 says that financial reporting frameworks in India typically use the corresponding figures approach for general purpose financial statements.
Audit procedures (paragraphs 7-9)
| Step | What the auditor does | Paragraph |
|---|---|---|
| Presence and classification | Determines whether the comparatives the framework requires are included and properly classified | 7 |
| Agreement | Checks that the comparatives agree with the amounts and disclosures presented in the prior period | 7(a) |
| Policies | Checks that policies are consistent with the current period, or that changes are properly accounted for, presented and disclosed | 7(b) |
| Possible misstatement | If a possible material misstatement in the comparatives comes to notice, performs the additional procedures needed; if the auditor audited the prior period, also follows SA 560 on facts known after the report date | 8 |
| Representations | Requests written representations for all periods referred to in the opinion, plus a specific representation on any prior period item separately disclosed in the current year's statement of profit and loss | 9 |
For comparative financial statements the representations cover all periods referred to in the opinion, because management has to reaffirm those earlier representations; for corresponding figures they cover the current period statements, which include the corresponding figures, plus the specific prior period item representation (A1). See SA 580 and SA 560.
Reporting on corresponding figures (paragraphs 10-14)
The opinion does not refer to the corresponding figures, because it is on the current statements as a whole, including those figures (paragraph 10, A2). There are exceptions.
| Situation | Effect on the report | Paragraph |
|---|---|---|
| Prior report was qualified, adverse or disclaimed, and the matter is unresolved | Modify the current opinion; the Basis paragraph refers to both current and corresponding figures if the effects on current figures are material, or otherwise explains that the opinion is modified because of effects on comparability | 11 |
| Material misstatement in prior statements previously given an unmodified opinion | Check whether it was dealt with under the framework; if not, express a qualified or adverse opinion on the current statements, modified for the corresponding figures | 12 |
| Prior period audited by a predecessor, and the auditor may refer to the predecessor's report and decides to | Other Matter paragraph: that a predecessor audited, the type of opinion and reasons if modified, and the date of the report | 13 |
| Prior period unaudited | Other Matter paragraph that the corresponding figures are unaudited; opening balance evidence is still needed | 14 |
If the prior modification has been resolved and properly dealt with, the current opinion need not refer to it (A3). An unresolved matter may not affect current figures but can still require a modification because of effects on comparability (A4). Where prior statements were misstated, not amended, no revised report was issued under SA 560, and the corresponding figures are properly dealt with and disclosed, an Emphasis of Matter paragraph may be added (A6). Where the prior period was unaudited, the auditor should ask management to disclose that fact on the face of the current statements (A7a). If the auditor has difficulty getting evidence on opening balances, this may be a key audit matter, and inability to get it leads to a qualified opinion or disclaimer (A8; see SA 705).
Reporting on comparative financial statements (paragraphs 15-19)
| Situation | Effect on the report | Paragraph |
|---|---|---|
| Comparative statements presented | The opinion refers to each period presented and audited | 15 |
| Opinion on prior statements differs from the one previously given | Substantive reasons given in an Other Matter paragraph | 16 |
| Prior period audited by a predecessor | Other Matter paragraph with the same three points as above, unless the predecessor's report is revised with the statements | 17 |
| Material misstatement found in prior statements that the predecessor reported on without modification | Tell management and governance and ask that the predecessor be informed; if the predecessor issues a new report on amended statements, report only on the current period | 18 |
| Prior period unaudited | Other Matter paragraph that comparatives are unaudited; opening balance evidence still needed | 19 |
Because the report covers each period, the auditor may give a modified opinion or an Emphasis of Matter for one period and a different opinion on the other (A9). If the opinion on the prior period differs from what was previously expressed because new circumstances came to light in the current audit, the auditor may have additional duties to prevent future reliance on the earlier report (A11). If the predecessor cannot or will not revise its report, the Other Matter paragraph may say the predecessor reported before amendment, and the auditor, if satisfied about the adjustments, may add a paragraph saying it audited the adjustments but does not give an opinion or assurance on the prior period as a whole (A12). For the communication with a predecessor see section on previous auditor communication.
The standard's appendix has illustrative reports for modified prior opinions, predecessor audits and comparative statements; they are not copied here.
India-specific change
The printed text notes that ISA 710's provisions on restating prior period statements (paragraphs 9 and 12 of the ISA) are replaced in the Indian text by a requirement tied to prior period items disclosed separately in the statement of profit and loss, citing AS 5 as printed. The standard names this as the reason a specific representation about such items is required (paragraph 9).
Illustrative example
Larkspur Textiles Pvt Ltd is an invented company; all figures are illustrative. It presents 2025-26 figures with 2024-25 as corresponding figures. The previous auditor qualified the 2024-25 report because stock records were incomplete, and the matter is unresolved. The new auditor modifies the 2025-26 opinion and explains in the Basis section that the effects on the current figures are material and so refers to both. In a second case, the 2024-25 statements were unaudited because the company was newly converted. The current report has an Other Matter paragraph saying the corresponding figures are unaudited, the notes say so on the face of the statements, and the auditor still performs the opening balance procedures. Management also gives a specific representation about a Rs 15 lakh prior period item shown separately in the profit and loss.
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Key takeaways
- Corresponding figures sit within the current-period opinion; comparative statements get an opinion for each period.
- Comparatives must agree with last year's accounts and use consistent policies.
- An unresolved prior modification can modify the current opinion.
- Predecessor or unaudited years are explained in an Other Matter paragraph.
- A specific representation covers prior period items in the profit and loss statement.
Read next
- SA 510: opening balances
- SA 706: emphasis of matter and other matter
- SA 700 part 2: elements of the auditor's report
- SA 705: modifications to the opinion
Disclaimer: Based on the Standards on Auditing and quality standards issued by the Institute of Chartered Accountants of India, in the versions named in the article, and ICAI's announcement of 31 March 2026 on SQM 1 and SQM 2, as consulted on 3 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org. This article is general information, not legal advice; check the official text before acting.