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

Mehta & Associates, Chartered Accountants, are engaged by the management of Kaveri Traders Pvt. Ltd. to assist in preparing a balance sheet and Statement of Profit and Loss from information supplied by management, with no assurance to be given. Under which standard on related services should the engagement be performed, and what is the nature of the engagement?

The engagement falls under SRS 4410 (Revised) on compilation engagements. The practitioner assists management in preparing and presenting historical financial information and obtains no assurance on it. It is not an assurance engagement, so no audit opinion or review conclusion is given.

1. ASRS 4410 (Revised); a compilation engagement that assists management with preparation and presentation of historical financial information without obtaining any assurance on itCorrect
2. BSRS 4400; an agreed-upon procedures engagement in which the practitioner reports factual findings on procedures chosen by management
3. CSRS 4410 (Revised); an assurance engagement in which the practitioner gives limited assurance on the information supplied by management
4. DSA 700; an audit engagement in which the practitioner expresses an opinion on the true and fair view