Page 169 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
3. Not practical: If the auditor concludes that an audit of a single financial statement or of a specific element of
a financial statement in accordance with SAs may not be practicable, the auditor may discuss with management
whether another type of engagement might be more practicable.
Acceptability of the Financial Reporting Framework
1. Determining Acceptability - SA 210: SA 210 requires the auditor to determine the acceptability of the
financial reporting framework applied in the preparation of the financial statements. In the case of an audit of a
single financial statement or of a specific element of a financial statement, this assessment is still necessary.
2. Adequacy of Disclosures for Understanding: This shall include whether application of the financial
reporting framework will result in a presentation that provides adequate disclosures to enable the intended users
to understand the information conveyed in the financial statement or the element, and the effect of material
transactions and events on the information conveyed.
3. Standards established by recognised organisation: A single financial statement or a specific element of a
financial statement may be prepared in accordance with an applicable financial reporting framework that is
based on a financial reporting framework established by an authorised or recognised standards setting
organisation for the preparation of a complete set of financial statements.
If this is the case, determination of the acceptability of the applicable framework may involve considering
whether that framework includes all the requirements of the framework on which it is based that are relevant to
the presentation of a single financial statement or of a specific element of a financial statement that provides
adequate disclosures.

(CNO SA- 805.060) Considerations When planning and performing the Audit
(Shortcut: Accurate AIM)
1. Adaptation of Relevant SAs: In planning and performing the audit of a single financial statement or of a
specific element of a financial statement, the auditor shall adapt all SAs relevant to the audit as necessary in the
circumstances of the engagement.
2. Use of Audit Evidence from Complete Set of Financial Statements: When auditing a single financial
statement or a specific element of a financial statement in conjunction with the audit of the entity’s complete set
of financial statements, the auditor may be able to use audit evidence obtained as part of the audit of the entity’s
complete set of financial statements.
SAs, however, require the auditor to plan and perform the audit of the financial statement or element to obtain
sufficient appropriate audit evidence on which to base the opinion on the financial statement or on the element.
3. Interrelation of Individual Financial Statements: The individual financial statements that comprise a
complete set of financial statements, and many of the elements of those financial statements, including their
related notes, are interrelated.
Accordingly, when auditing a single financial statement or a specific element of a financial statement, the auditor
may not be able to consider the financial statement or the element in isolation. Consequently, the auditor may
need to perform procedures in relation to the interrelated items to meet the objective of the audit.
4. Materiality Determination and Its Impact: Furthermore, the materiality determined for a single financial
statement or for a specific element of a financial statement may be lower than the materiality determined for the
entity’s complete set of financial statements; this will affect the nature, timing, and extent of the audit procedures
and the evaluation of uncorrected misstatements.

(CNO SA- 805.080) Form of Opinion
(Shortcut: ATS Opinion)
1. Applicable FRF & Applicable Law or Regulation: The form of opinion to be expressed by the auditor
depends on the applicable financial reporting framework and any applicable laws or regulations.
2. Agreed Terms of Audit Engagement - SA 210: SA 210 requires that the agreed terms of the audit engagement
include the expected form of any reports to be issued by the auditor. In the case of an audit of a single financial

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