Skip to content

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

Sunrise Textiles Pvt Ltd asks CA Meera to help its accounts team prepare a balance sheet and Statement of Profit and Loss from the books for internal management use only. Meera is not asked to give any assurance on the statements. Which Standard on Related Services governs this engagement?

SRS 4410 (Revised) Compilation Engagements governs the work. It deals with the practitioner's responsibilities when assisting management to prepare and present historical financial information without obtaining any assurance on it. Agreed-upon procedures under SRS 4400 and audit or review standards involve different objectives and do not apply here.

  1. ASRS 4410 (Revised) Compilation EngagementsCorrect
  2. BSRS 4400 Engagements to Perform Agreed-upon Procedures Regarding Financial Information
  3. CSA 700 on forming an opinion and reporting on financial statements
  4. DSA 910 on engagements to review 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 where specific procedures are agreed and findings reported, which is not the case here. SA 700 relates to audit opinions and a review engagement gives assurance, so neither fits.

Did you get it right without looking?

One question tells you little. A timed set on Related Services shows your real accuracy, how long you take and where you lose marks.

Practise Related ServicesFree diagnostic mock

More Related Services questions