General ConsiderationsGeneral Considerations

General Considerations

6 The nature, timing and extent of work to be performed in a special purpose audit engagement will vary with the circumstances.

7 Before undertaking a special purpose audit engagement, the auditor shall ensure there is agreement with the client as to the exact nature of the engagement and the form and content of the report to be issued.

8 In planning the audit work, under paragraph 7 of this Auditing Standard, the auditor needs to obtain a clear understanding of the purpose for which the information being reported on is to be used, and who is likely to use it. To avoid the possibility of the auditor’s report being used for purposes for which it was not intended, the auditor ordinarily indicates in the report the purpose for which the report is prepared and any restrictions on its distribution and use.

9 The auditor’s report on a special purpose audit engagement, except for a report on a summarised financial report, shall include the following basic elements, ordinarily in the following layout:

(a) a title clearly identifying it as the report of an independent auditor;

(b) an addressee;

(c) an introductory paragraph that:

(i) identifies the financial information that was audited including the name of the entity whose financial information has been audited and the reporting period covered by the financial information;

(ii) identifies the responsible party, and includes a description of that party’s responsibility for preparing and presenting the financial information in accordance with the applicable financial reporting framework; and

(iii) includes a statement that the auditor is responsible for expressing an opinion on the financial information based on the audit;

(d) a scope paragraph (describing the nature of an audit) that:

(i) includes a statement that the audit was conducted in accordance with Australian Auditing Standards and an explanation that these Auditing Standards require the auditor to comply with relevant ethical requirements relating to audit engagements; and

(ii) a description of the work the auditor performed;

(e) a statement that the auditor believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the auditor’s opinion;

(f) an opinion paragraph containing an expression of opinion on the financial information that refers to the applicable financial reporting framework;

(g) the date of the auditor’s report;

(h) the auditor’s address; and

(i) the auditor’s signature.

10 When relevant, the auditor ordinarily includes the following elements: