CA. Zora has recently accepted engagement of the statutory audit of Segment Ltd. for the financial year 2024–25. While reviewing the trial balance…

(i) Audit Procedures to be followed in case of initial audit engagement: As per SA 510, “Initial Audit Engagements – Opening Balances”, the auditor shall obtain sufficient appropriate audit evidence about whether the opening balances contain misstatements that materially affect the current period's financial statements by: Determining whether the prior period's closing balances have been correctly brought forward to the current period or, when appropriate, any adjustments have been disclosed as prior period items in the current year's Statement of Profit and Loss;Determining whether the opening balances reflect the application of appropriate accounting policies; andPerforming one or more of the following:Where the prior year financial statements were audited, perusing the copies of the audited financial statements including the other relevant documents relating to the prior period financial statements;Evaluating whether audit procedures performed in the current period provide evidence relevant to the opening balances; orPerforming specific audit procedures to obtain evidence regarding the opening balances. (ii) Approach to be followed if he is either unable to obtain adequate evidence about the Opening Balances or finds material misstatements therein: If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor shall express a qualified opinion or a disclaimer of opinion, as appropriate. Further, If the auditor concludes that the opening balances contain a misstatement that materially affects the current period's financial statements, and the effect of the misstatement is not properly accounted for or not adequately presented or disclosed, the auditor shall express a qualified opinion or an adverse opinion.