Question

what are the special consideration involved in the audit of a company​

Answer 1

In July 2007, an exposure draft of proposed ISA 800 (Revised and Redrafted) was approved. The prepared draft was named as Special Considerations-Audits of Special Purpose Financial Statements and Elements, Accounts or Items of a Financial Statement.

The special considerations include-  

• The scope of ISA 700 (Redrafted) should be limited to a comprehensive set of general purpose financial statements. The statements need to be prepared in accordance with the proper presentation or the compliance framework. The ISA 700 (Redrafted) title should also form an opinion and report on the financial statements.

• ISA 800 (Revised and Redrafted) should properly adhere to the special considerations in audits of complete sets of financial statements prepared as per the special purpose frameworks. Such appropriate frameworks should be a fair presentation or compliance frameworks.

• Special considerations that relate to an audit of single financial statements and specific elements and accounts or items of a financial statement should be addressed under the new ISA ie ISA 805. The new ISA 805, Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement. The ISA 800 (Revised and Redrafted) title should be amended to Special Considerations - Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.