We offer special purpose audits as non-statutory audits and other specific reviews to our clients.
Special purpose audits refer to those cases in which the auditor provides a report on specific financial information for specific purposes to specific financial users, in comparison with the general audit of financial statements. Special purpose audit engagements are described according to the International Standards on Auditing (ISA 800).
There may be cases in which a special purpose audit assignment is based on an organization that sets competent or recognized standards or a financial reporting framework established by law or regulation, but does not meet all the requirements of that framework.
The special purpose audit framework may not be a fair presentation framework even if the financial reporting framework on which it is based is a fair presentation framework. This is because the special purpose framework may not comply with all the requirements of the financial reporting framework established by the authorized or recognized standards setting organization or by law or regulation that are necessary to achieve fair presentation of the financial statements.
Financial statements generated by special purpose audit may be the only financial statements prepared by an entity. In such cases, those financial statements may be used by users other than those for whom the financial statements in the financial framework are prepared. Despite the broad distribution of the financial statements in this context, financial statements are still considered special purpose audit generated financial statements for the purposes of ISAs. Where disclosures are required, they contain descriptive or explanatory information that is explicitly permitted or otherwise permitted by the applicable financial reporting framework, included in the front of the financial statements or in the notes or cross-references.
In the case of special purpose audited financial statements, the needs of the intended users for financial information are a key factor in determining the acceptability of the financial reporting framework used in the preparation of the financial statements.
There may be a need certain of consideration during special purpose audit. ISA 200 requires auditors to comply with relevant ethical requirements, including requirements for the independence of financial statement audit engagements, and all audit-related ISAs. It also requires the auditor to comply with each requirement of the ISA if all ISAs are or are not conditional on the terms of the assignment and are appropriate because the condition does not exist. In exceptional cases, the auditor may decide that it is necessary to deviate from the relevant requirement in the ISA by implementing alternative audit procedures to achieve the purpose of this requirement.
In general, special purpose audit offered to clients refers to those situations in which the client intends to present specific financial information to specific financial users for specific purposes in comparison with the general audited financial statements.