Introduction to Special Purpose Engagements
What Are Special Purpose Engagements?
Special purpose engagements involve auditing or reporting on financial information prepared for purposes other than general-purpose financial reporting. These engagements may use special purpose frameworks or address specific financial information, prospective information, or internal control reporting.
- May involve special purpose financial reporting frameworks.
- Can include audits of specific accounts or financial statement elements.
- Often satisfy contractual, regulatory, or tax reporting needs.
- Require modified reporting while following applicable auditing standards.
Note
Special purpose engagements still require sufficient appropriate audit evidence even though the reporting objective differs from a standard financial statement audit.
Summary
Special purpose engagements address unique reporting needs while maintaining professional auditing standards.