The International Auditing and Assurance Standards Board (IAASB) has released for public exposure proposed International Standard on Related Services (ISRS) 4410, Compilation Engagements.
The proposed standard is the first step in the IAASB’S work to create robust standards for services that can be used by entities that are either not required or do not elect to be audited to meet their business reporting needs. Through a compilation engagement, practitioners can provide significant benefit by applying their expertise in accounting and financial reporting. This expertise is applied to assist the management of an entity in preparing and presenting historical financial information for use by the entity’s internal or external stakeholders.
“Regulations affecting financial reporting by small- and medium-sized entities (SMEs) continue to evolve, highlighting the critical need for standards that support quality services to meet the needs of those entities and their stakeholders,” says Prof. Arnold Schilder, IAASB Chairman. Through the proposed ISRS 4410, as well as additional planned standards, the IAASB aims to address the growing international need for standards that support a range of services other than audit, adds Schilder.
“The proposed ISRS 4410 will help practitioners around the world converge on the use of a globally accepted benchmark for performance of compilation engagements,” notes IAASB Technical Director James Gunn. “Further, the ISRS will help promote development of practice in jurisdictions that currently do not have national standards in this area, and also provide clarity for users about what is delivered in a compilation engagement.”
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