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CA Ravi Taori
08
SPECIALISED AREAS
Case Study-- CA. Julie
Assignment: Julie, a newly joined CA at a Mumbai audit firm, receives her first assignment, which involves
auditing a client's financial statements prepared according to a contract's financial reporting provisions.
Dilemma: She is unsure whether auditing standards apply to such engagements and what special considerations
should be taken into account. Julie is concerned about the reporting aspects, as the report will not be issued
under the Companies Act 2013, and she is sceptical about the report's potential use.
SA 800: She refers to the ICAI website and discovers that SA 800 is relevant to her situation. She also watches
recorded webinars for further clarity.
Specialized Areas: Julie learns that the SA 800-899 series deals with specialized areas. SA 800 pertains to audits
of financial statements prepared under a special purpose framework, while SA 805 relates to audits of a single
financial statement or a specific element, account, or item of a financial statement. She delves deeper into SA
810, which provides detailed information about summary financial statements, the nature of procedures,
forming opinions, and reporting considerations. This new knowledge excites her, and she is eager to apply it
practically.
(CNO SA800.020) Introduction To 800 Series
Special purpose framework: Special considerations apply in respect of the audit of financial statements
prepared in accordance with the special purpose framework.
Single financial statement or specific element: Similarly, special considerations apply to an audit of a single
financial statement or of a specific element, account or item of a financial statement.
Summary financial statements: Specific responsibilities are cast upon an auditor in case of undertaking an
engagement to report on summary financial statements. These summary financial statements are derived from
financial statements audited in accordance with SAs by that same auditor.
There are three separate SAs for the above specialised areas as under: -
SA 800: SA 800 deals with special considerations applicable in respect of the audit of financial statements
prepared in accordance with the special purpose framework.
SA 805: SA 805 deals with special considerations applicable to an audit of a single financial statement or of a
specific element, account or item of a financial statement.
SA 810: SA 810 deals with responsibilities of an auditor when undertaking an engagement to report on summary
financial statements derived from financial statements audited in accordance with SAs by that same auditor.
All the aforesaid discussed Standards on auditing broadly deal with following areas:
Acceptance of Engagements: All the aforesaid discussed Standards on auditing broadly deal with the acceptance
of such engagements.
Planning and Performance: They also focus on the planning and performance of such engagements.
Forming an Opinion and Reporting: Additionally, forming an opinion and reporting consideration in such
engagements are addressed.
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