Page 184 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
6. Intended Use and Distribution: The intended use and distribution of the financial information, and any
restrictions on either its use or its distribution where applicable.
7. Engagement Letter: The practitioner shall record the agreed terms of engagement in an engagement letter or
other suitable written agreement before performing the engagement.
8. Recurring Engagements: On recurring compilation engagements, the practitioner must evaluate if
circumstances require revising the terms of engagement and if there's a need to remind management of the
existing terms.

(CNO SRS 4410.060) Performing the Engagement
1A. Knowledge of Entity’s Business:
• The practitioner must obtain sufficient knowledge of the entity’s business, operations, accounting system, and
accounting records to perform the compilation engagement effectively.
1B. Knowledge of Reporting Framework:
• The practitioner needs to understand the applicable financial reporting framework and its application in the
entity’s industry.
2A. Compilation using Provided Information:
• Financial information should be compiled using records, documents, explanations, and other information,
including significant judgments, provided by management.
2B. Discussion of Significant Judgments:
• The practitioner should discuss with management or those charged with governance any significant judgments,
especially those that the practitioner assisted with, in the course of compiling the financial information.
3. Review before Completion:
• Before completing the compilation engagement, the practitioner must read the compiled financial
information, considering their understanding of the entity’s business and the applicable financial reporting
framework.
4A. Addressing Incomplete or Inaccurate Information:
• If the practitioner discovers any incomplete, inaccurate or unsatisfactory records or information provided by
management, they should bring this to the attention of management and request the corrected or additional
information needed.
4B. Withdrawal for Inadequate Information:
• If management fails to provide the necessary information, the practitioner should withdraw from the
engagement, informing management and those charged with governance of the reasons for withdrawal.
5A. Proposing Amendments:
• If any issues with the financial information or its adherence to the financial reporting framework are found,
the practitioner must propose the appropriate amendments to management.
5B. Withdrawal for Declined Amendments:
• If management declines or does not permit the proposed amendments, the practitioner must withdraw from
the engagement, notifying management and those charged with governance of the reasons.
5C. Determining Responsibilities if Withdrawal is Impossible:
• If withdrawal from the engagement is not possible, the practitioner should determine the professional and
legal responsibilities applicable in the circumstances.
6. Acknowledgment of Responsibility for Final Version: (Like WR)
• The practitioner should obtain acknowledgment from management or those charged with governance that
they are responsible for the final version of the compiled financial information.
Communication with Management and Those Charged with Governance
Communication with Management and Governance:

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