Initial Engagements :
Standard on Auditing (SA) 510, “Initial Audit Engagements-Opening Balances”, deals with the auditor’s responsibility relating to opening balances
when conducting initial audit engagement. Opening balances include financial statement amounts as well as matters requiring disclosures. The sheer volume makes verification of opening balances a challenge by itself where normal traditional techniques of verification are not in practice.
The auditor needs to perform the audit procedures as mentioned in SA 510 and if after performing those procedures, the auditor concludes that the
opening balances contain misstatements which materially affect the financial statements for the current period and the effect of the same is not properly accounted for and adequately disclosed, the auditor should express a qualified opinion or an adverse opinion, as appropriate.