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

CA Rohan is engaged by Kaveri Industries Ltd. to compile financial statements prepared on a special purpose framework, intended for use only by management. In drafting the compilation report, which of the following is consistent with the illustrative report in SRS 4410 (Revised)?

The report should state that the financial statements and the accuracy and completeness of the information used to compile them are management's responsibility, refer to SRS 4410 (Revised), and restrict use and distribution to management, since the statements are for management's own purposes.

  1. AThe report says the financial statements and the accuracy and completeness of the information used to compile them are management's responsibility, and that the report is for management's use onlyCorrect
  2. BThe report says the practitioner is responsible for the accuracy and completeness of the underlying information
  3. CThe report is addressed to shareholders and may be distributed to lenders
  4. DThe report omits any reference to compliance with SRS 4410 (Revised) because no assurance is given

Explanation

The illustrative report states the practitioner performed the engagement in accordance with SRS 4410 (Revised) and that the statements and the accuracy and completeness of the information used are the responsibility of management. Distribution is restricted to management. The other options contradict this.

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