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

CA Rohan compiled financial statements of Kaveri Traders on a special purpose framework, intended only for the management's own use. He is drafting the compilation report. Which statement is consistent with the form of report illustrated in SRS 4410 (Revised)?

The report should be addressed to management and state that the financial statements and the accuracy and completeness of the information used to compile them are management's responsibility. It should also say it is for management's use only and must not be distributed to other parties.

1. AThe report is addressed to management, says the financial statements and the accuracy and completeness of the information used are management's responsibility, and restricts distribution to managementCorrect
2. BThe report is addressed to the bank and states that Rohan is responsible for the accuracy and completeness of the information used
3. CThe report states that Rohan expresses an opinion on whether the statements give a true and fair view
4. DThe report may be freely distributed to any third party because compilation involves no assurance