Not every report needs a full general-purpose audit. It often still needs independent verification to be credible. FinApt Group provides special purpose assurance on financial information prepared for a defined purpose, framework or group of users.
What Special Purpose Assurance Covers
Organisations often need to prepare financial or non-financial information for a specific use, rather than for the public or general shareholders. A standard financial statement audit is not always the right fit for that. We design the engagement around the report’s actual purpose. We confirm the criteria it needs to meet, who will rely on it, and the level of assurance required.
This typically applies to:
- Special purpose or carve-out financial statements: for a specific entity, branch or business unit rather than the full group
- Financial information prepared under a defined reporting framework, such as a Limited Partnership Agreement or Trust Deed
- Reports required for a specific lender, investor, donor, partner or regulator
- Financing, grant, investment or contractual reporting requirements
- Restructuring or transaction-related reporting, including carve-out statements prepared ahead of a sale or reorganisation
- Compliance reporting where the subject matter and criteria are clearly defined
How This Differs From a General-Purpose Audit
A general-purpose audit gives an opinion on financial statements intended for a broad range of users. A special purpose engagement is typically performed under ISA 800 or ISA 805, depending on scope. It gives an opinion on information prepared under a specific framework, for a specific purpose and a defined group of users. The report is written to make that scope, and its limits for any other use, clear.
Where the requirement is narrower still, for example a specific figure or metric verified with no opinion given at all, an agreed-upon procedures engagement (see our agreed-upon procedures services) is usually the better fit.
Our Approach
Getting the scope right at the outset is what makes a special purpose engagement work. Before starting, we confirm with you:
- Why the information is being prepared, and for whom
- Which reporting framework or criteria apply
- Whether those criteria are available to the report’s users
- What level of assurance is actually required
The resulting report is scoped and worded so it can’t be read as providing more assurance than the engagement actually delivered.
Why FinApt Group for Special Purpose Assurance
- Licensed auditors with Ministry of Economy signing rights, experienced in special purpose and carve-out financial statements alongside standard statutory audits
- Engagements scoped correctly from the outset, working alongside our transaction advisory and audit teams where a special purpose report supports a wider deal or financing process
- Reports written for the specific framework and audience they’re intended for, not adapted from a general-purpose template
Frequently Asked Questions
What’s the difference between special purpose assurance and a regular audit?
A regular audit gives an opinion on general-purpose financial statements for a broad range of users. Special purpose assurance gives an opinion on information prepared under a specific framework, for a specific purpose and a defined group of users.
When would I need a special purpose assurance report instead of an agreed-upon procedures engagement?
If you need an actual opinion on information prepared under a defined framework, special purpose assurance is the right engagement. If you only need specific factual findings with no opinion attached, an agreed-upon procedures engagement is usually faster and more targeted.
What are carve-out financial statements?
Carve-out financial statements present the financial position and results of a specific business unit, branch or entity separately from its wider group. They are commonly prepared ahead of a sale, restructuring or standalone financing.
Who typically requires a special purpose assurance report?
Lenders, investors, partners, donors or regulators who need independent verification of information prepared for their specific purpose, rather than general-purpose financial statements.