CA Final · Advanced Auditing, Assurance and Professional Ethics · Related Services
A CA firm is engaged to compile a schedule for Sagar Foods Ltd to comply with a regulator's prescribed form and content. The framework is a compliance framework and use is restricted to intended users. Which statement about the practitioner's compilation report in this situation is consistent with SRS 4410 (Revised)?
The compilation report says the practitioner applied accounting and reporting expertise to help prepare the schedule as the regulation prescribes, while the schedule and the accuracy and completeness of the underlying information remain management's responsibility. No verification or true and fair opinion is given.
- AThe report states that the firm applied its expertise in accounting and financial reporting to assist in preparing the schedule as prescribed by the regulation, and that the schedule and the accuracy and completeness of the information used are management's responsibilityCorrect
- BThe report states that the firm has verified the accuracy and completeness of all information provided
- CThe report states that responsibility for the schedule rests with the practitioner
- DThe report expresses an opinion that the schedule is true and fair
Explanation
The illustration says the firm applied expertise to assist in preparation as prescribed by the regulation, and that the schedule and the accuracy and completeness of information are management's responsibility. The report also says the firm is not required to verify the information. Statements of verification, practitioner responsibility or true and fair opinion contradict this.
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