For the first time in over 30 years, the Auditing and Assurance Standards Board has issued a new standard on compilation engagements, Canadian Standard on Related Services (CSRS) 4200 Compilation Engagements. The new standard is effective for periods ending on or after December 14, 2021, and will impact all users of compiled financial information, including third-party users such as lenders, suppliers and purchasers of a business.
Why the change?
Under the existing compilation standard, there was often a misunderstanding by users of compiled financial information as to the extent of work performed by the practitioner in compilation engagements, and the compiled financial information provided no information as to the basis of accounting applied in its preparation.
Key changes under the new standard include:
- A new compilation engagement report that describes the responsibilities of management and the practitioner and the nature and scope of the engagement; and
- A requirement to include a note that describes the basis of accounting applied in the preparation of the financial information.
The following guide offers an overview of the significant changes, how the new standard will help third-party users, what will be included in the new compilation report, and an outline of the basis of accounting required. Download the PDF below for more information.