CA Final · Advanced Auditing, Assurance and Professional Ethics · Related Services
Sundaram & Co., 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 the books and information provided by management, without any assurance being given. Which Standard on Related Services governs this engagement?
SRS 4410 (Revised), Compilation Engagements, governs the engagement. It deals with a practitioner assisting management to prepare and present historical financial information without obtaining any assurance on it. Agreed-upon procedures fall under SRS 4400, and audit standards apply only where an opinion is expressed.
- ASRS 4400, Engagements to Perform Agreed-upon Procedures Regarding Financial Information
- BSRS 4410 (Revised), Compilation EngagementsCorrect
- CSA 700, Forming an Opinion and Reporting on Financial Statements
- DSA 805, Special Considerations: Audits of Single Financial Statements
Explanation
SRS 4410 (Revised) deals with the practitioner's responsibilities when engaged to assist management with the preparation and presentation of historical financial information without obtaining any assurance on it. SRS 4400 applies to agreed-upon procedures, where the auditor performs procedures and reports factual findings, not to assisting in preparation. SA 700 and SA 805 are audit standards that involve an opinion, which is absent here.
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