With the advent of the new compilation engagement standard, CSRS 4200, both the Auditing and Assurance Standards Board (AASB) and CPA Canada have released various guidance to assist practitioners, clients and third party users understand the changes that this new standard represents.
The AASB has released its Basis for Conclusions document which summarizes the process that the AASB followed in issuing the new compilation engagement standard as well as the Board’s conclusions regarding significant comments received in response to its Exposure Draft.
CPA Canada appointed a Compilation Engagements Guidance Task Force to assist in the development of materials to help various interested parties understand and implement the new compilation engagement standard. Clearline Consulting’s own Tom Gillespie, CPA, CA was a contributing member of this task force. At the time that CSRS 4200 was release the task force released the following documents:
- A Practitioner’s Alert which explains why the AASB felt that change was needed, the significant differences between CSRS 4200 and the previous standards, services excluded from the scope of the new standard, the required disclosure of a basis of accounting and the new compilation engagement report.
- A Practitioner’s Implementation Tool that presents factors to consider when determining if an engagement can be accepted, considerations when performing the engagement, including frequently asked questions, examples of descriptions of the basis of accounting, a sample compilation engagement report, and a summary of the significant differences between CSRS 4200 and Section 9200, Compilation Engagements.
- A Management Briefing to help facilitate discussions between practitioners and their clients about the new standard including an illustrative example of the new compilation engagement report, and explanation about the new basis of accounting disclosure, expected changes to the engagement process as well as a summary of other possible engagements.
- A Third Party Briefing which is designed to support discussions between management, third parties, and practitioners on the new compilation standard as well as a summary of other possible engagements.