CA Final · Advanced Auditing, Assurance and Professional Ethics · Related Services

A practitioner has compiled financial statements for Nilgiri Foods Pvt. Ltd. under SRS 4410 (Revised). The finance head asks why the compilation report does not say that the statements give a true and fair view. Which explanation consistent with the standard's illustrative report should the practitioner give?

A compilation is not an assurance engagement, so the practitioner need not verify the accuracy or completeness of management's information. Accordingly the report expresses neither an audit opinion nor a review conclusion, and it does not state that the statements give a true and fair view.

1. AThe practitioner has verified only material items, so a true and fair view is given by implication
2. BSince compilation is not an assurance engagement, the practitioner is not required to verify the accuracy or completeness of the information provided and expresses neither an audit opinion nor a review conclusionCorrect
3. CThe practitioner has forgotten to include it, and the report must be reissued with a true and fair opinion
4. DCompilation reports express an adverse opinion by default unless management provides a representation letter