SA 510 requires the auditor to obtain sufficient appropriate audit evidence that opening balances do not contain misstatements that materially affect the current period's financial statements. CORAA implements this by ingesting the prior-year signed audit report (PDF) or the prior-year trial balance (Excel), and tying every current-year opening figure to its prior-year closing counterpart. Drift surfaces before fieldwork begins.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
At Engagement Setup, upload the prior-year signed audit report PDF. CORAA extracts the closing balances per ledger via OCR. Alternative: upload the prior-year Trial Balance as Excel for direct ingestion.
After current-year data ingests, CORAA runs the SA 510 verification: each CY opening figure matched to its PY closing counterpart. Variances above the configured threshold surface in the SA 510 Working Paper.
For each variance, the auditor either (a) accepts with documented rationale (e.g., reclassification between ledgers), (b) flags for client correction, or (c) discloses in Form 3CD or the audit report. The SA 510 Working Paper is locked when all variances are addressed.
Upload the signed PY audit report as PDF. CORAA's OCR extracts the closing balance per ledger from the Schedule III BS and P&L. Works on Indian audit report formats from any audit firm.
When no PY audit report is available (or to supplement it), upload the PY Trial Balance as Excel. CORAA matches ledgers between PY and CY by GL Code first, then by name.
The SA 510 Working Paper lists every ledger with PY closing, CY opening, and variance. Variances above threshold are highlighted; zero-variance ledgers can be collapsed.
When no PY auditor existed (new entity, change of auditor), SA 510 first-year procedures apply. CORAA prompts for: management representation, physical asset verification, balance confirmations from third parties, and review of PY books if available.
