ISA 800 provides guidance in connection with special purpose audi engagements including:
a) Financial statements prepared in accordance with comprehensive basis of accounting other than Intemation:.. Accounting Standards or national standards;
b) Specified accounts, elements of accounts, or items in a financial statements;
c) Compliance with contractual agreements;
d) Summarized financial statements
In Pakistan’s context, the auditors are also required to issue opinion certain matters required by the Companies Ordinance, 1984. Two m commonly reports are:
a) Statutory report
b) Report on prospectus
Section 157 requires that every company limited by shares andcompany limited by guarantee and having a share capital shall, period of not less than three months, not more than six moths, from date at which the company is entitled to commence the business, . a general meeting of the members of the company, which is called ‘the statutory meeting.
The directors shall, at least 21 days before the date on which the meeting is held, forward a report, referred to as “the statutory report” The contents of the report have been set out in sub sections (3) and (4) of section 157. Section 157 (5) of the Companies Ordinance, 1984 requires that statutory report shall, so far as it relates to the shares allotted by the company, be accompanied by a certificate of the auditors of the company as to the correctness of such allotment, receipts of cash, and receipts and payments.
The auditor’s certificate on statutory report may take following form: We, the undersigned, being the auditors of XYZ Limited, hereby certify that so much of this report as relates to the shares allotted, the cash received in respect of such shares, and the receipts and payments of the company is correct