What are corresponding figures?
ISA 710.11 sets the auditor's objective: determine whether the financial statements include the comparative information required by the applicable framework. When the framework specifies corresponding figures (as IFRS does under IAS 1.38), the auditor evaluates whether those figures agree with the amounts and disclosures presented in the prior period, or whether they have been appropriately restated.
ISA 710.12 adds a second layer. The auditor must also evaluate whether the accounting policies reflected in the corresponding figures are consistent with those applied in the current period. If the client changed an accounting policy, the auditor checks whether the change was applied retrospectively to the corresponding figures under IAS 8.22 and whether the disclosures are adequate.
The opinion paragraph does not mention the prior period. This is the defining difference from comparative financial statements, where the auditor's opinion would explicitly cover both years. Under corresponding figures, the prior year data supports the current year presentation but is not separately opined on. Two situations trigger additional reporting: when a predecessor auditor audited the corresponding figures (ISA 710.19 requires an Other Matter paragraph), and when a prior period modification remains relevant (ISA 710.14 requires modification of the current period opinion if the matter is unresolved and material).
Key Points
- Under corresponding figures, the auditor's opinion refers to the current period only.
- The auditor must still evaluate whether the prior period figures are properly presented and consistently classified.
- If a predecessor firm audited the prior year, an Other Matter paragraph is mandatory.
- Prior period errors corrected by restatement require evaluation of the IAS 8 disclosures even though the auditor is not re-opining on that year.
Why it matters in practice
The most common gap is failing to evaluate IAS 8 disclosures when corresponding figures have been restated. Checking that the restated numbers agree to the restatement schedule is necessary but not sufficient. IAS 8.49 requires specific disclosures (the nature of the error, the correction amount for each affected line item). Teams that verify the numbers without verifying the disclosures leave the file incomplete.
When a prior period modification remains unresolved, ISA 710.14 requires the auditor to modify the current year opinion even though the corresponding figures approach means the auditor is not separately opining on the prior period. Some teams treat the resolution of the prior year modification as a closed matter once the comparative numbers are restated, without assessing whether the underlying issue still affects the current period opinion.
Worked example: Navarro Logística S.L.
Client: Spanish logistics company, FY2024, revenue €67M, IFRS reporter. Audited by the same firm for FY2023 and FY2024. During the FY2024 audit, the engagement team identified that the client had reclassified €2.9M of lease liabilities from non-current to current in the FY2023 corresponding figures (correcting an error in the original maturity analysis) and changed its depreciation method for delivery vehicles from straight-line to units-of-production, applied retrospectively under IAS 8.
Evaluate the reclassification: The €2.9M relates to lease liabilities maturing within 12 months of the FY2023 balance sheet date that were incorrectly classified as non-current. The corrected classification now matches the maturity profile under IAS 1.60–61.
Assess the retrospective policy change: The change from straight-line to units-of-production depreciation affects €8.4M of delivery vehicles. The client applied the new method retrospectively to FY2023 under IAS 8.19, reducing FY2023 depreciation by €410K. The team verified the recalculation using actual kilometres driven from vehicle telematics data.
Determine reporting consequences: The current period opinion covers FY2024 only. No predecessor auditor is involved (same firm). No emphasis of matter paragraph is warranted because the disclosures are adequate and the matters are not judged fundamental under ISA 706.8. The corresponding figures are defensible because the file separately addresses both the error correction and the policy change, with disclosure adequacy documented for each.
Corresponding figures vs comparative financial statements
Under corresponding figures, the auditor's opinion covers the current period only. The prior period data is an integral part of the current period statements. Under comparative financial statements, the auditor's opinion covers both periods separately and the prior period data is a complete set of statements presented alongside the current period.
When a predecessor auditor is involved, the corresponding figures approach requires an Other Matter paragraph under ISA 710.19. Under comparative financial statements, the predecessor's report is typically reissued or referred to. The choice between the two methods is not the auditor's – the applicable financial reporting framework dictates which approach the client uses. IFRS, RJ, HGB, and Belgian GAAP require corresponding figures. US GAAP typically requires comparative financial statements.
Key standard references
- ISA 710.11–12: Auditor's evaluation of corresponding figures for appropriate presentation and policy consistency.
- ISA 710.14: Requirement to modify the current year opinion when a prior period modification remains unresolved.
- ISA 710.19: Mandatory Other Matter paragraph when a predecessor auditor audited the corresponding figures.
- IAS 8.19–22: Retrospective application of accounting policy changes to corresponding figures.
- IAS 8.49: Disclosure requirements for prior period error corrections.
Related terms
Related reading
Frequently asked questions
What is the difference between corresponding figures and comparative financial statements?
Under corresponding figures, the prior period data is an integral part of the current year statements and the auditor's opinion covers only the current period. Under comparative financial statements, the prior period is a separate complete set of statements and the auditor opines on both periods. IFRS uses corresponding figures; US GAAP typically uses comparative financial statements.
What happens when a prior period modification remains unresolved?
ISA 710.14 requires the auditor to modify the current year opinion if the matter giving rise to the prior period modification is unresolved and material to the current period, even though the corresponding figures approach means the auditor is not separately opining on the prior period.