SA 805 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SA 805 deals with audits that are narrower than a full set of financial statements: one statement such as a cash flow statement, or one element such as cash and bank balances or a schedule of receivables. It explains how to adapt the SAs and how to report without confusing the narrow opinion with the opinion on the whole.
SA 805 (Revised), as effective for audits of single financial statements or of specific elements, accounts or items for periods beginning on or after 1 April 2024, and, for such information prepared as at a specific date, as at a date on or after 1 April 2024, applies to this kind of engagement. ICAI may revise standards, so check icai.org for the current text. Bank-facing schedules are a regular use, and bank compliance and stock statement work often produces them.
The SAs in the 100-700 series apply, adapted as necessary (paragraph 1). The auditor first decides whether the audit is practicable, especially if the auditor is not also auditing the complete set, checks that the framework gives adequate disclosures for the statement or element, considers whether the expected form of opinion is appropriate, and reports under SA 700. Where the audit is alongside an audit of the complete set, separate opinions are given. An adverse opinion or disclaimer on the whole limits what can be said on a single statement or element.
Scope and definitions (paragraphs 1-6)
The SAs in the 100-700 series apply to an audit of financial statements and are adapted for other historical financial information. This SA covers a single financial statement or a specific element, account or item. These may follow a general or special purpose framework; for a special purpose framework, SA 800 also applies (paragraph 1). The standard does not apply to a component auditor's report issued for the principal auditor's consolidated audit (paragraph 2), and does not override other SAs (paragraph 3).
A single financial statement (for example, a cash flow statement) or element (for example, cash and bank balances) includes the related notes (paragraph 6(c)). "Financial Reporting Standards" is defined to include ICAI's Accounting Standards, Accounting Standards notified under the Companies Act, 2013, IFRSs, IPSASs and other applicable standards (paragraph 6(b)). The appendices give examples of such other historical financial information and illustrative reports, which are described here but not reproduced.
Accepting the engagement (paragraphs 7-9)
| Point | What the auditor does | Paragraph |
|---|---|---|
| Applying the SAs | Complies with all relevant SAs whether or not also auditing the complete set; if not, determines whether an audit of the statement or element under the SAs is practicable | 7 |
| Framework | Determines acceptability under SA 210, including whether the framework yields adequate disclosures for users to understand the information and the effect of material transactions | 8 |
| Form of opinion | Considers whether the expected form of opinion is appropriate | 9 |
An auditor who does not audit the complete set often lacks the same understanding of the entity, its internal control and the quality of the records. More evidence may be needed to corroborate the records, and some SAs may require work disproportionate to the element. The example given is that SA 570 on going concern is likely to be relevant to an audit of a schedule of accounts receivable, but compliance may be impracticable because of the effort. In that case, the auditor may discuss another type of engagement with management (A5; see SA 210).
A framework for a single statement may be based on a framework for a complete set; acceptability then involves asking whether it includes all the requirements of that framework that matter for adequate disclosure (A6). On the form of opinion, the usual phrases ("present fairly, in all material respects" or "give a true and fair view") may not fit if the framework does not explicitly deal with a standalone statement or element. Factors include whether the framework is restricted to a complete set, whether the statement or element complies fully with relevant requirements and disclosures, and whether the phrases are generally accepted in the jurisdiction for such an opinion (A8).
Planning and performing (paragraph 10)
The auditor adapts all relevant SAs. Even for a specific element, SA 240 on fraud, SA 550 on related parties and SA 570 on going concern are in principle relevant, because the element could be misstated through fraud, related party effects or wrongly applying the going concern basis (A9). Other points in the application material:
- the people overseeing the single statement or element may differ from those overseeing the complete set (A10);
- representations from management about the complete set are replaced by representations about presentation of the statement or element under the framework (A11);
- evidence from an audit of the complete set may be used, but the auditor must still obtain sufficient appropriate evidence for the narrower opinion (A12);
- statements and elements are interrelated, so the auditor may need procedures on related items (A13); and
- materiality for a single statement or element may be lower than for the complete set, affecting procedures and the evaluation of uncorrected misstatements (A14).
Opinion and reporting (paragraphs 11-13)
The auditor applies SA 700 and, when applicable, SA 800, adapted as needed (paragraph 11). The statement or element must provide adequate disclosures to enable users to understand the information and the effect of material transactions and events (A15). Reporting adaptations include:
| Topic | Point | Reference |
|---|---|---|
| Going concern | Descriptions of responsibilities may need adapting | A18 |
| Key audit matters | Required by SA 700 for complete sets of general purpose statements of listed entities | A19 |
| Other information | Reports accompanying the statement or element to inform owners or similar stakeholders count as annual reports under SA 720 | A20 |
If the auditor reports on a statement or element together with an audit of the complete set, a separate opinion is expressed for each engagement (paragraph 12). If published together, and the presentation does not differentiate sufficiently, the auditor asks management to fix it; the auditor also differentiates the opinions and does not issue the report until satisfied (paragraph 13).
Implications of the complete-set report (paragraphs 14-17)
If the report on the complete set contains a modified opinion, an Emphasis of Matter or Other Matter paragraph, a Material Uncertainty Related to Going Concern section, or a statement of uncorrected misstatement of other information, the auditor considers the implications, if any, for the audit of the statement or element and the report on it (paragraph 14).
| Situation | Rule | Paragraph |
|---|---|---|
| Adverse opinion or disclaimer on the complete set, and the same report | No unmodified opinion on a single statement or element in that report (see SA 705) | 15 |
| Same, but the auditor, in a separate audit of a specific element, considers an unmodified opinion appropriate | Only if law does not prohibit it, the report is not published with the adverse or disclaimer report, and the element is not a major portion of the complete set | 16 |
| Adverse opinion or disclaimer on the complete set, and a single financial statement | No unmodified opinion, even if separately published, because a single statement is deemed a major portion | 17 |
Illustrative example
Pioneer Agro Ltd is an invented company; all figures are illustrative. A bank asks Pioneer's auditor to report on a schedule of trade receivables totalling Rs 38 crore, for a drawing power review. The auditor is also the statutory auditor, so audit evidence from the main audit can be used. The auditor checks that the framework gives enough disclosure on ageing and disputed balances, agrees the form of opinion with the bank, adapts SA 240, SA 550 and SA 570 to the schedule, and sets a lower materiality than for the statements as a whole because the schedule is a basis for lending. Representations from management cover the schedule. A separate report is issued for the schedule, clearly distinguished from the main audit report. Had the main audit ended with a disclaimer, an unmodified opinion on a single statement could not be given.
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Key takeaways
- The SAs apply, adapted, to a single statement or element.
- If the auditor does not also audit the complete set, practicability must be checked first.
- Materiality for a narrow subject may be lower than for the whole.
- Separate opinions are given when the audit accompanies a complete-set audit.
- An adverse opinion or disclaimer on the whole prevents an unmodified opinion on a single statement.
Read next
- SA 800: special purpose frameworks
- SA 810: summary financial statements
- SA 705: modifications to the opinion
- SA 700 part 1: forming an opinion
Disclaimer: Based on the Standards on Auditing and quality standards issued by the Institute of Chartered Accountants of India, in the versions named in the article, and ICAI's announcement of 31 March 2026 on SQM 1 and SQM 2, as consulted on 3 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org. This article is general information, not legal advice; check the official text before acting.