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CA Ravi Taori
SRS 4410 Compilation Engagements

(CNO SRS 4410.020) Introduction.
SRS 4410: SRS 4410 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 that
information, and to report on the engagement in accordance with this SRS.
Financial & Non-financial: It applies to compilation engagements for historical financial information.
Compilation engagements for financial information other than historical financial information, and
compilation engagements for non-financial information can be performed under this Standard after necessary
adaptation.
SQC 1 Applicability: SQC 1 is applicable to all Engagement Standards. Since SRS 4410 is also one of
Engagement Standards, SQC 1 applies to firms in respect of firm’s compilation engagements too.
What is a Compilation engagement?
Definition: Compilation engagement is an engagement in which a practitioner applies accounting and financial
reporting expertise to assist management in the preparation and presentation of financial information of an
entity in accordance with an applicable financial reporting framework and issues a report.
Request by Management: Management may request a professional accountant in public practice to assist with
the preparation and presentation of financial information of an entity.
Financial information that is the subject of a compilation engagement may be required for various
purposes including
Mandatory periodic financial reporting: Financial information that is the subject of a compilation engagement
may be required for various purposes including to comply with mandatory periodic financial reporting
requirements established in law or regulation, if any.
Other Purposes: Financial information may also be required for purposes unrelated to mandatory financial
reporting under relevant law or regulation, including for example,
• For internal use: For management or those charged with governance, prepared on a basis appropriate for
their particular purposes (such as preparation of financial information for internal use).
• For external parties: The information can be used for periodic financial reporting undertaken for external
parties under a contract or other form of agreement, such as financial information provided to a funding
body to support provision or continuation of a grant.
• Transactional Purposes: It may also be used for transactional purposes, for example to support a
transaction involving changes to the entity’s ownership or financing structure, such as for a merger or
acquisition.
Not an Assurance Engagement: A compilation engagement is not an assurance engagement.
• No Verification: It does not require the practitioner to verify the accuracy or completeness of the
information provided by management for the compilation.
• No expression of an audit opinion or a review conclusion: A compilation engagement does not require
the practitioner to gather evidence to express an audit opinion or a review conclusion on the preparation of
the financial information.
Objectives in accordance with SRS 4410
Assisting Management: Apply accounting and financial reporting expertise to assist management in the
preparation and presentation of financial information in accordance with an applicable financial reporting
framework based on information provided by management.
Reporting: Another objective is to report in accordance with the requirements of this SRS.
Scope of Compilation Engagements

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