The auditor's report includes a paragraph alerting readers that the statements are prepared under a special purpose framework and may not be suitable for other purposes. Loan agreements and grant programmes are common uses.
Source: BDS 800
Related terms
Independent auditor's reportThe formal report in which the auditor sets out in writing the opinion reached on the financial statements and the basis for that opinion.Emphasis of matter paragraphA paragraph in the auditor's report drawing attention to a matter appropriately disclosed in the financial statements that is fundamental to users' understanding.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Appointment and registration of the auditorIn companies subject to independent audit, the election of the auditor by the general assembly for each financial year and the registration and announcement of the election in the trade registry.
Last updated: November 8, 2026 · This definition is for general information only.