What should auditors consider regarding opening balances in new audits?

Auditors must consider opening balances in new audits primarily because they provide a foundation for the financial statements of the current period. Ensuring that the opening balances align with the prior year's audited figures is crucial since they impact the accuracy of the current year's financial reporting. This process includes verifying that these balances are free from material misstatements, which can significantly affect the overall reliability of the financial statements.

By agreeing with last year's audited figures, the auditor not only corroborates the figures provided by management but also ensures continuity and accountability in financial reporting. This verification process often involves reviewing prior year working papers, understanding any adjustments made, and confirming that they have been accurately reflected in the current year's opening balances.

Monitoring opening balances safeguards against carry-over errors from previous periods that could distort the financial picture of the organization in the current audit. Thus, the emphasis on aligning with last year’s audited figures is paramount in establishing a reliable basis for the current audit engagement.