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c) The specific element does not constitute a major portion of the entity’s complete set of financial
statements
3. Case Discussion: Discuss Case.
4. Conclusion: He can express an unmodified opinion on trade receivables if above conditions are satisfied.

QNO Doing different audits New Course – (SM23)
805.300 TITANIUM CNO-- Unique
CA M. Surya is auditor for financial statements of an entity prepared in accordance with financial reporting
provisions of a contract. He is also offered audit of trade receivables appearing in above financial
statements. Can he accept such engagement? Discuss brief outline of his audit approach in such a
situation.
Answer 1. SA 800 & 805: Reference to SA 800 & 805, its full name & its applicable in the given scenario.
2. Concept: SA 800: As per SA 800 there are no restriction on auditor of general purpose FST accepting audit
of special purpose FST. Single FST can be as per general purpose or special purpose framework.
SA 805: As per SA 805 there is no restriction on auditor of complete set accepting audit of single FST,
element, accounts or items of FST.
Infact it is good thing as per both SAs.
3. Case Discussion: Discuss Case.
4. Conclusion: In above case auditor is doing audit element of FST prepared as per special purpose
framework so he needs to ensure both SA 800 & SA 805 should be complied with.

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