Page 183 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
1A. Scope Variation: The scope of a compilation engagement will vary depending on the circumstances of the
engagement. However, in every case, it will involve assisting management in the preparation and presentation
of the entity’s financial information based on information provided by management.
1B. Management's Drafts: In some compilation engagements, management may have already prepared the
financial information itself in a draft or preliminary form.
2. Management's Responsibility: Management retains responsibility for the financial information and the basis
on which it is prepared and presented.
• Application of judgment: This responsibility includes the application of judgment required for the
preparation and presentation of the financial information.
• Accounting Policies and Estimates: Management's responsibility also encompasses the selection and
application of appropriate accounting policies and, where needed, developing reasonable accounting
estimates.
3A. Financial Reporting Frameworks: Different financial reporting frameworks can be used to prepare and
present financial information, ranging from a simple entity-specific basis of accounting to established financial
reporting standards.
3B. Framework Selection: The financial reporting framework adopted by management to prepare and present
the financial information will depend on the nature of the entity and the intended use of the information.
Ethical Requirements
Ethical requirements: The practitioner shall comply with relevant ethical requirements. In complying with the
Code of Ethics, threats to the practitioner’s compliance with relevant ethical requirements are required to be
identified and appropriately addressed.
No Independence: Being in nature of non-assurance engagement, independence requirements do not apply to
compilation engagements. However, laws or regulations may specify requirements or disclosure rules pertaining
to independence.

(CNO SRS 4410.040) Engagement Acceptance and Continuance
The practitioner shall not accept the engagement unless the practitioner has agreed the terms of engagement
with management, and the engaging party if different, including.
1. Objective and Scope: The objective and scope of the compilation engagement.
2A. Management's Responsibilities:
The responsibilities of management for: -
Financial Information Responsibility: The responsibilities of management for the financial information, and
for its preparation and presentation in accordance with a financial reporting framework that is acceptable
considering the intended use and users.
Internal Control: Management's responsibility for the design, implementation, and maintenance of internal
control necessary for preparing financial statements free from material misstatement, whether due to fraud or
error.
Accuracy and Completeness: The responsibility of management for the accuracy and completeness of records,
documents, explanations, and other information provided for the compilation engagement.
Judgments in Preparation: Management's responsibility for judgments needed in the preparation and
presentation of the financial information, including those where the practitioner may provide assistance during
the compilation engagement.
2B. Financial Reporting Framework: Identification of the applicable financial reporting framework.
3A. Practitioner's Responsibilities: The responsibilities of the practitioner, including the requirement to
comply with relevant ethical requirements.
3B. Practitioner’s Report: The expected form and content of the practitioner’s report.

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