An auditor may report on summary financial statements that are derived from complete financial statements if the auditor:I. indicates in the report whether the information in the summary financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derivedII. includes both the date of the report on the complete financial statements and the opinion expressed on those statements

CPA AUD reporting on special purpose frameworks (OCBOA) involves auditing financial statements prepared using non-GAAP bases—cash, tax, regulatory, or contractual. Auditors must include an Emphasis-of-Matter paragraph highlighting the framework, state that it is not GAAP, and restrict distribution to specific users.  Key Special Purpose Frameworks (OCBOA) Cash Basis: Records revenues/expenses only when cash is received or paid. Tax Basis: Used for filing income tax returns. Regulatory Basis: Complies with requirements of a government agency. Contractual Basis: Prepared to comply with a... Show more

CPA AUD reporting on special purpose frameworks (OCBOA) involves auditing financial statements prepared using non-GAAP bases—cash, tax, regulatory, or contractual. Auditors must include an Emphasis-of-Matter paragraph highlighting the framework, state that it is not GAAP, and restrict distribution to specific users. 

Key Special Purpose Frameworks (OCBOA)
Cash Basis: Records revenues/expenses only when cash is received or paid.
Tax Basis: Used for filing income tax returns.
Regulatory Basis: Complies with requirements of a government agency.
Contractual Basis: Prepared to comply with a specific agreement. 

Reporting and Other Issues
Auditor's Report: The report must include an Emphasis-of-Matter paragraph referring to the note describing the framework and indicating that the basis is a basis other than GAAP.
Non-GAAP Disclosure: The audit report must state that the framework is not in accordance with GAAP.
Restriction of Use: Reports based on regulatory or contractual bases must often include a paragraph restricting the report's use to specific, intended parties.
Specific Elements/Accounts: Auditors can report on single items (e.g., rentals, royalties) rather than full financial statements.
Materiality: When auditing specific elements, materiality is defined in terms of that specific item, not the overall financial statements. 

Key Requirements
Framework Description: The audit must include an adequate description of how the special purpose framework differs from GAAP.
Management Responsibility: Management is responsible for determining the framework's acceptability.
Auditor Evaluation: Auditors must assess whether the framework is appropriate for the purpose of the financial statements.

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