Obtaining evidence on opening balances when this is the first year of the engagement.
In conducting an initial audit, to obtain sufficient appropriate audit evidence about whether opening balances contain misstatements that materially affect the current period's financial statements.
SA 510 sits in the Audit Evidence phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 510 into practice — built from the ICAI working-paper set, free to download.
And when you want SA 510 executed and documented automatically — your first audit on CORAA is free.
SA 510 — Initial Audit Engagements — Opening Balances — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Obtaining evidence on opening balances when this is the first year of the engagement. In conducting an initial audit, to obtain sufficient appropriate audit evidence about whether opening balances contain misstatements that materially affect the current period's financial statements.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 510 in the audit evidence phase, that means evidencing: Read the most recent FS and the predecessor auditor's report; Determine whether prior-period closing balances have been correctly brought forward; Determine whether accounting policies are consistently applied.
