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4. SA 700: When forming an opinion and reporting on special purpose financial statements, the auditor shall
apply the requirements in Revised SA 700.

(CNO SA800.100) Description of the Applicable Financial Reporting Framework
Financial Statement Disclosure
1A. Description of FRF: Revised SA 700 requires the auditor to evaluate whether the financial statements
adequately refer to or describe the applicable financial reporting framework.
1B. Example: In the case of financial statements prepared in accordance with the provisions of a contract, the
auditor shall evaluate whether the financial statements adequately describe any significant interpretations of the
contract on which the financial statements are based.
Audit Report Disclosure
2. Additional reporting requirement: Revised SA 700 deals with the form and content of the auditor’s report.
In the case of an auditor’s report on special purpose financial statements, certain additional requirements apply.
2A. Description of Purpose and Intended Users: (a) The auditor’s report shall also describe the purpose for
which the financial statements are prepared and, if necessary, the intended users, or refer to a note in the special
purpose financial statements that contain that information.
2B. Choice of FRF: (b) If management has a choice of financial reporting frameworks in the preparation of such
financial statements, the explanation of management’s responsibility for the financial statements shall also make
reference to its responsibility for determining that the applicable financial reporting framework is acceptable.
Alerting Readers that the Financial Statements Are Prepared in Accordance with a Special Purpose
Framework
Usage other than intended: The special purpose financial statements may be used for purposes other than those
for which they were intended. For example, a regulator may require certain entities to place the special purpose
financial statements on public record.
Alerting Users: To avoid misunderstandings, the auditor alerts users of the auditor’s report that the financial
statements are prepared in accordance with a special purpose framework. Therefore, the alerted financial
statements may not be suitable for another purpose.
Restriction on Distribution or Use
Restriction on Distribution: In addition to the alert required as discussed above, the auditor may consider it
appropriate to indicate that the auditor’s report is intended solely for the specific users.
Depending on the law or regulation applicable, this may be achieved by restricting the distribution or use of the
auditor’s report.
Expansion of Alert Paragraph: In these circumstances, the paragraph alerting the readers may be expanded to
include these other matters, and the heading modified accordingly.

SA 805-SPECIAL CONSIDERATIONS—AUDITS OF SINGLE FINANCIAL STATEMENTS AND SPECIFIC
ELEMENTS, ACCOUNTS OR ITEMS OF A FINANCIAL STATEMENT

(CNO SA- 805.020) Introduction.
1A. Applicability of SAs 100-700 Series: Standards on Auditing (SAs) in the 100-700 series apply to an audit of
financial statements and are to be adapted as necessary in the circumstances when applied to audits of other
historical financial information.
1B. Applicability of SA 800: The single financial statement or the specific element, account or item of a financial
statement may be prepared in accordance with a general or special purpose framework. If prepared in accordance
with a special purpose framework, SA 800 also applies to the audit.
1C. Applicability of SA 805: SA 805 deals with special considerations in the application of those SAs to an audit
of a single financial statement or of a specific element, account or item of a financial statement.SA 805 does not

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