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CA Ravi Taori

SA 800 - SPECIAL CONSIDERATIONS - AUDITS OF FINANCIAL STATEMENTS PREPARED IN
ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS

(CNO SA800.040) Introduction to SA 800
SA 800: As discussed above, SA 800 deals with special considerations applicable in respect of audit of financial
statements prepared in accordance with special purpose framework.
Acceptance of the Engagement: SA 800 addresses special considerations that are relevant to the acceptance of
the engagement.
Planning and Performance of Engagement: The standard also focuses on the planning and performance of
that engagement.
Forming an Opinion and Reporting: It addresses forming an opinion and reporting on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
What is Special Purpose framework?
Definition: SA 800 defines special purpose framework as a financial reporting framework designed to meet the
financial information needs of specific users.
Fair Presentation or Compliance Framework: The financial reporting framework may be a fair presentation
framework or a compliance framework.
Determination of Form and Content: The requirements of the applicable financial reporting framework
determine the form and content of the financial statements. These requirements also dictate what constitutes a
complete set of financial statements.
Examples of Special purpose frameworks are: -
(Shortcut: RCC)
Financial Reporting Provisions by Regulator: Another example is the financial reporting provisions
established by a regulator to meet the requirements of that regulator.
Financial Reporting Provisions of a Contract: The financial reporting provisions of a contract, such as a bond
indenture, a loan agreement, or a project grant, also fall under this category.
Cash basis accounting for Creditors: Examples include the cash receipts and disbursements basis of accounting
for cash flow information that an entity may be requested to prepare for creditors.
General purpose Framework Vs Special Purpose Framework
Special purpose framework is to be distinguished from general purpose framework.
General Purpose Framework: A financial reporting framework designed to meet the common financial
information needs of a wide range of users is known as “General Purpose Framework”.
Special Purpose Framework: Whereas a financial reporting framework designed to meet the financial
information needs of specific users is known as “Special Purpose Framework”.

(CNO SA800.060) Considerations When Accepting Such Engagement
(Shortcut: LAN)
1A. Law Prescribed Financial Reporting Framework: Some laws or regulations may prescribe the financial
reporting framework to be used by management in the preparation of special purpose financial statements for a
certain type of entity. Example, a regulator may establish financial reporting provisions to meet the requirements
of that regulator. In the absence of indications to the contrary, such a financial reporting framework is presumed
acceptable for special purpose financial statements prepared by such an entity.
1B. Standards supplemented by law: Where the financial reporting standards are supplemented by legislative
or regulatory requirements, SA 210 requires the auditor to determine whether any conflicts between the financial
reporting standards and the additional requirements exist and prescribes actions to be taken by the auditor if
such conflicts exist.

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