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

Gupta & Co. is compiling a schedule of specified financial information for Raman Industries Ltd. to meet a regulator's prescribed form and content. The schedule is meant only for the regulator as the intended user. Which approach to the compilation report is consistent with SRS 4410 (Revised) illustrations?

The report should say the schedule is prepared on the basis prescribed by the regulation, that the practitioner followed SRS 4410 (Revised) and relevant ethical requirements, and that distribution is restricted to the intended users. No audit opinion is given since compilation is not assurance.

  1. AAddress the report to the public at large and state that it can be freely distributed to all stakeholders
  2. BState that the schedule was prepared on the basis prescribed by the regulation, that the practitioner complied with relevant ethical requirements, and restrict distribution of the report to the intended usersCorrect
  3. CExpress a positive audit opinion that the schedule is free from material misstatement
  4. DOmit any reference to the standard because regulatory schedules fall outside SRS 4410 (Revised)

Explanation

The illustration for regulatory compliance information refers to the schedule prepared as prescribed by the regulation, states compliance with SRS 4410 (Revised) and relevant ethical requirements, and restricts distribution to intended users. It does not give an audit opinion, and the report is not for public distribution.

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