A special report is a customized financial reporting document that deviates from the standard format of Generally Accepted Accounting Principles (GAAP). Special reports are created to address unique information needs while maintaining professional standards and clarity. Examples of special reports include a compliance report and a report based on agreed-upon procedures.
The term special report is also used in journalism to refer to an in-depth investigative piece that explores a particular subject matter. Specialized reporting is often a tool for journalists to increase their credibility and provide valuable insight into complex subjects for their audience. It is especially useful when dealing with controversial topics, such as alleged wrongdoing or corruption, or technical subject matters that require a high level of understanding and expertise to tackle effectively.
Typically, a special report will focus on a breaking news story that has occurred or is in the process of occurring and compel a mass audience to watch. The program may be broadcast for an extended amount of time to allow viewers to follow a developing story through live analysis by analysts in-studio, over the phone, via satellite or on-the-go. Special reports are often accompanied by a ticker and lower third graphics to convey urgency and compel viewers to tune in.
In the auditing field, special report is an engagement that involves applying agreed-upon procedures to a specified element, account or item of a financial statement. This could be a stand-alone engagement or part of an audit of the entity’s financial statements in accordance with GAAP. When this is the case, a special report should be described in the footnote to the entity’s financial statements and it should state that the auditor’s opinion on the financial statements is not based on a complete presentation under another comprehensive basis of accounting.