ISA 800 (Revised) DEALS with special considerations in the APPLICATION of (ISAs 100-700) to an audit of financial statements prepared in accordance with a ‘Special Purpose Framework’.
Table of Contents
ISA 800 (Revised) – Introduction
1. Scope of this ISA
It is written in the context of a COMPLETE set of financial statements prepared in accordance with a ‘Special Purpose Framework‘.
ISA 800 (Revised) deals with SPECIAL considerations relevant to an Audit of a Single Financial Statement or of a specific Element, Account or Item of a ‘Financial Statement’.
2. Effective Date
This ISA is EFFECTIVE for audits of financial statements for periods ending on or after December 15, 2016.
ISA 800 – Objective
The Objective of the ‘Auditor’ is to ADDRESS appropriately the special considerations that are relevant to:
- The Acceptance;
- The Planning and Performance; AND
- Forming an opinion and Reporting on the ‘Financial Statements’.
ISA 800 – Definitions
1. Special Purpose Financial Statements
Financial Statements prepared in accordance with a ‘Special Purpose Framework’.
2. Special Purpose Framework
A financial reporting framework designed to Meet the financial information needs of specific users. The financial reporting framework May-be a ‘Fair Presentation Framework‘ or a ‘Compliance Framework‘.
ISA 800 – Requirements
1. Considerations When Accepting the Engagement
1.1 Acceptability of the Financial Reporting Framework
ISA 210 Requires the ‘Auditor’ to determine the acceptability of the financial reporting framework, the auditor shall OBTAIN an understanding of:
| (a) The purpose for which the financial statements are prepared; |
| (b) The intended users; AND |
| (c) The steps taken by Management to determine that the applicable financial reporting framework is acceptable in the circumstances. |
2. Considerations When Planning and Performing the Audit
ISA 200 Requires the ‘Auditor’ to COMPLY with all ISAs relevant to the audit. In planning and performing an audit of special purpose financial statements, the auditor shall DETERMINE whether application of the ISAs requires special consideration.
ISA 315 (Revised) Requires the ‘Auditor’ to OBTAIN an understanding of the entity’s selection and application of Accounting Policies.
3. Forming an Opinion and Reporting Considerations
When Forming an opinion and reporting on Special Purpose Financial Statements, the ‘Auditor’ shall APPLY the Requirements in ISA 700 (Revised).
3.1 Alerting Readers that the Financial Statements are Prepared in Accordance with a Special Purpose Framework
The auditor’s report on Special Purpose Financial Statements shall INCLUDE an ‘Emphasis of Matter Paragraph’ alerting users of the auditor’s report that the financial statements are prepared in accordance with a special purpose framework and that as a result, the financial statements May NOT be suitable for another purpose.
Synopsis
ISA 800 ‘Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks‘ DEALS with special considerations in the application of (ISAs 100-700) to an audit of financial statements prepared in accordance with a ‘Special Purpose Framework’.
[800-899] Specialized Areas
Chartered Accountant (Institute of Chartered Accountants of Pakistan)
Bachelor of Accounting Honours (Asia e University, Malaysia)