Canon A540 - Manual (Page 72)

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The images you shoot are automatically assigned file numbers. You
can select how the file number is assigned.
File Number Reset Function
* When a blank memory card is used. If a memory card with recorded data is
used, the 7-digit number for the last recorded folder and image is compared
with the last one on the card, and the larger of the two is utilized as the
basis for new images.
Resetting the File Number
PowerShot A540
PowerShot A530
1
(Set up) Menu [File
Numbering] [Continuous]/
Auto Reset].
See Menus and Settings (p. 23) .
Continuous
A number one higher than the last one recorded is
assigned to the next image. This is convenient for
managing all your images together on a computer
because you avoid file name duplication when
changing folders or memory cards.*
Auto Reset
The image and folder number are reset to the starting
value (100-0001).* This is convenient for managing
images on a folder-by-folder basis.