What is the key factor in determining the acceptability of the special purpose financial reporting framework applied?
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What should auditors do when financial statements are presented in accordance with special purpose framework?The auditor shall express an unmodified opinion when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.
What are the special consideration involved in the audit of a company?(a) The acceptance of the engagement; (b) The planning and performance of that engagement; and (c) Forming an opinion and reporting on the financial statements. ISA 805, “Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement.”
What is applicable financial reporting framework?The term “applicable financial reporting framework” refers to the financial reporting framework used by management to prepare the entity's financial statements. An entity's legislative and regulatory obligations often determine the applicable financial reporting framework.
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