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

CA firm Rao & Co. is engaged to compile a schedule of inventory values that a regulator requires a company to submit, prepared in the form and content prescribed by the regulator. Use is restricted to the regulator. Which approach to the compilation report follows the illustration in SRS 4410 (Revised)?

Rao & Co. should issue a compilation report stating that the schedule was compiled from information management provided on the basis prescribed by the regulation, that no audit opinion or review conclusion is given, and that distribution is restricted to the intended users.

1. AIssue a report stating the schedule is audited and certified as correct against the regulation
2. BIssue a report addressed to management stating the schedule was compiled from information provided, was prepared on the basis prescribed by the regulation, with no audit opinion or review conclusion, and with distribution restricted to intended usersCorrect
3. CIssue no report because regulatory schedules fall outside SRS 4410 (Revised)
4. DIssue a report giving a review conclusion that nothing has come to attention indicating non-compliance with the regulation