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It appears that the decision to classify a transaction as a special item involves a significant amount of judgement. Could a governmental entity be motivated

It appears that the decision to classify a transaction as a special item involves a significant amount of judgement. Could a governmental entity be motivated to use funds from a non-recurring special item transaction to cover a shortfall in revenue from recurring sources of funding and not report the special item as such, for political purposes? An auditor should view the audit client's financial statements with healthy skepticism. Shouldn't the users of financial statements do the same thing?

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Judgment in Classifying Special Items and Potential Misuse 1 Judgment in classifying special items Yes classifying a transaction as a special item doe... blur-text-image

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