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

Sunrise Traders Pvt Ltd asks CA Meera to help prepare its management-use balance sheet and Statement of Profit and Loss from the books, without any assurance. Which describes the correct nature of the engagement and report under SRS 4410 (Revised)?

This is a compilation engagement under SRS 4410 (Revised). The practitioner assists management in preparing financial information without obtaining assurance, and the report states that no audit opinion or review conclusion is expressed, since a compilation is not an assurance engagement.

  1. AA compilation engagement, where the report states that the practitioner does not express an audit opinion or review conclusionCorrect
  2. BA limited assurance engagement, where the report expresses negative assurance on the statements
  3. CAn agreed-upon procedures engagement, where the report lists factual findings
  4. DAn audit engagement, where the report gives a true and fair opinion

Explanation

SRS 4410 (Revised) deals with assisting management in preparing and presenting historical financial information without obtaining any assurance. The sample report says the practitioner does not express an audit opinion or a review conclusion. Limited assurance and audit opinions are not part of a compilation.

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