TPL-SPA — Special Purpose Audit (ISA 800)
Audit of a single financial statement, a specific account, or a specific element — typically demanded by a landlord, lender, donor, regulator, or contract counterparty. Same audit-evidence rigour as TPL-AA but scoped to one or two areas.
When to use TPL-SPA
| Scenario | What's audited | User |
|---|---|---|
| Bank loan covenant audit | Loan-covenant ratios + supporting balances | Lender |
| Landlord turnover-rent audit | Sales of a specific outlet for rent calculation | Landlord |
| Royalty audit | Royalty-bearing revenue + computation | Licensor |
| Donor / grant audit | Specific grant fund + expense allocation | Donor agency |
| Regulator-specific audit | Statutory single-FS report | Regulator |
| Contract-specific audit | Sub-contractor cost claim, JV settlement | Counterparty |
Template metadata
| code | TPL-SPA |
| requires_workpapers | 1 (subset of the 12 standard — typically 3-6 used) |
| est_total_hours | 30-80 |
| typical duration | 2-5 weeks |
| deliverables | Special-purpose audit report (ISA 800 format) · scope-of-engagement memo · evidence file |
The 5 task phases
| Phase | Key tasks |
|---|---|
| planning | Engagement letter (with explicit scope + framework + intended user) · independence · scope memo |
| fieldwork | Tests on the in-scope balances/elements only · supporting evidence · representation letter from management |
| reporting | Draft special-purpose report (ISA 800 wording differs from ISA 700) |
| review | Manager + partner review |
| admin | Issue · lock · archive · invoice |
Key differences from TPL-AA
- Scope: ONE statement / element / account — not the full FS pack
- Framework: may be IFRS, may be a special framework (cash basis, regulatory, contract-based) — engagement letter must specify
- Report wording: ISA 800 variant — explicitly identifies the special purpose + intended user + restriction on distribution
- Restricted distribution: the report is for the named user only; "Restricted Use" paragraph included
- No KAM: KAM is for general-purpose audits per ISA 701; not applicable here
Step-by-step
Get the scope crystal-clear in writing
The engagement letter is the contract. Specify exactly what's being audited, the framework, the intended user, and the distribution restriction. Vague scope = scope creep + unbillable hours.
Pick the right workpapers
Auto-seed creates 12, but you only need a subset. Mark the rest N/A — outside scope per engagement letter. Quick + clean.
Test the in-scope balances
Use the same procedural rigour as TPL-AA on the in-scope items. Don't shortcut just because scope is narrow — your conclusion still has weight.
Get a representation letter
Specific to the SPA scope. Management confirms the in-scope info is complete + accurate.
Draft the ISA 800 report
The wording differs from ISA 700. Use the firm's SPA template. Include the "Restriction on Use" paragraph.
Issue + archive
Same lifecycle as Phase 13. Deliver only to the named user.
The "Restriction on Use" paragraph is critical. If a third party tries to rely on a SPA report not addressed to them, you've got a defence. Without that paragraph, you're potentially liable to anyone who reads it. Never omit it.
One client may need 3 SPAs in a year (bank covenant Q1, royalty audit Q2, grant audit Q4). Each is a separate TPL-SPA job. Common evidence (audit-tested balances) can be referenced across jobs via cross-refs — saves re-doing work.