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

CA Neha compiled a schedule of specified financial information of Orion Pharma Ltd to meet a regulator's prescribed form and content. The schedule is intended only for the regulator, and the applicable framework is a compliance framework. In the compilation report, which is the appropriate approach?

Neha should address the report to management, state that the engagement was performed in accordance with SRS 4410 (Revised), and restrict distribution to the intended users. The report gives no audit opinion or review conclusion, and the regulatory purpose does not remove the need to cite the standard.

  1. AExpress an audit opinion that the schedule is free from material misstatement
  2. BAddress the report to the management, state that it was performed in accordance with SRS 4410 (Revised), and restrict distribution to the intended usersCorrect
  3. CIssue an unrestricted report so that any third party can rely on the schedule
  4. DOmit the reference to SRS 4410 (Revised) because the schedule is regulatory

Explanation

The illustrative report for regulatory compliance information is addressed to management and states that the engagement was performed in accordance with SRS 4410 (Revised). It says the practitioner is not required to verify the information and expresses no audit opinion or review conclusion. Distribution is restricted to the intended users. An audit opinion, an unrestricted report or omitting the standard reference would each contradict this illustration.

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