A condition for acceptance of an assurance engagement is that the criteria referred to in the definition of an assurance engagement are suitable and available to the intended users. Criteria are the benchmarks used to evaluate or measure the subject matter including, where relevant, benchmarks for presentation and disclosure . Appropriate criteria allow consistent and adequate measurement or evaluation of the subject matter in the context of professional judgment. Without an acceptable financial reporting framework, management does not have an appropriate basis for preparing financial statements and the auditor does not have appropriate criteria in an audit of financial statements. In many cases, the auditor may consider that the applicable financial reporting framework is acceptable, as described in paragraphs A8-A9.
Many users of financial statements are not in a position to require financial statements to be prepared based on their specific information needs. Although all the information needs of a particular user cannot be met, there are financial information needs that are generally required by a wide variety of users. Financial statements prepared in accordance with a financial reporting framework designed to meet general financial information needs are called general purpose financial reports.
In the absence of such a basis, the financial reporting standards set by the body authorized or recognized to issue standards used by certain entities are considered acceptable for general purpose financial reports prepared by the entity concerned provided that the body follows a process that is determined legally. transparency that includes discussion and consideration of a broad range of stakeholders. Examples of such financial reporting standards include: Financial Accounting Standards set by the Financial Accounting Standards Board – Indonesian Institute of Accountants; Government Accounting Standards (SAP) established by the Government Accounting Standards Committee (KSAP); and Accounting principles issued by standard setting bodies that are authorized or recognized for certain jurisdictions. In this regard, the agency must also follow a standard setting process in a transparent manner, prepared with discussion and consideration from various stakeholders.
The financial reporting standards as mentioned above are often used as a financial reporting framework approved by laws and regulations as a guide in the preparation of general purpose financial reports.

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