Canadian practitioners have indicated that there is a need for a clarified standard that would better meet their needs by providing requirements and guidance on specific matters that have caused confusion and ambiguity in performing compilation engagements.
The AASB staff will:
- conduct research on examples of compiled financial statements issued by public accountants; and
- hold consultations with bankers and other lenders, legal counsel and Association of Insured Chartered Accountants and practitioners.
Key issues that will be addressed include:
- the perception of the marketplace with respect to the level of assurance taken versus assurance given; and
- the usefulness of financial statements compiled using a generally accepted financial reporting framework versus a less rigorous framework or no framework.
This project will include determining the nature and extent of revisions that should be made to Section 9200, Compilation Engagements. This may involve adoption of International Standard on Related Services (ISRS) 4400, Compilation Engagements.