When we become your auditor for the first time, opening balances matter. We review prior-period statements, contact the predecessor auditor where permitted, and test significant equity and asset opening amounts so the current-year opinion rests on solid ground.
This work is usually bundled into a first-year statutory audit fee, but can be scoped separately when a parent company only needs comfort on historical equity before a capital raise or restructuring.
Expect additional time for inventory existence if the prior year-end count was not observed by an auditor, and for related-party balances that lack contemporaneous documentation.