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"Initial engagements" mean when the financial statements are audited for the first time or when the financial statements for the preceding period were audited by another auditor. “Opening balances” means those account balances which exist at the beginning of the period. This AAS establishes standards regarding audit of opening balances in case of initial engagements. The Standard, therefore, deals with audit procedures for obtaining sufficient appropriate evidence in respect of opening balances. The Standard also provides guidance to the auditors on situations warranting qualified opinion/ disclaimer of opinion.

This AAS is effective for all audits commencing on or after July 1, 2001.


Issued in July, 2001.
Published in the Handbook of Auditing Pronouncements, Vol. I, (Edn. 2003).
Also available as a separate publication of the Institute (Price: Rs. 15/-).
ISBN: 81-87072-64-4.

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