Basic Principles of Compilation Using ISRS 4410 – 5 March 2025

A compilation engagement, as defined by ISRS 4410, provides financial statement preparation services without expressing assurance, helping businesses comply with financial reporting standards while management retains responsibility for the integrity of the data.

Date:

5 March, 2025

Time:

15:00

Hours:

2 hours

CPD Units:

Category:

Financial Reporting

Group:

Channel 1: Compliance

Format:

Live Event

Product Information

The International Standard on Related Services (ISRS) 4410, Compilation Engagements, provides a framework for accountants engaged in the preparation of financial statements without providing any assurance. ISRS 4410 is specifically designed for compilation engagements and establishes key principles to ensure transparency, professionalism, and clarity in these services. It establishes the basic principles and responsibilities for practitioners performing compilations, aiming to assist clients in presenting financial information in accordance with an applicable financial reporting framework. However, unlike an audit or a review, no assurance is provided on the accuracy or completeness of the financial information.

What will set you apart

By attending this webinar you will gain the following competencies:

Delegates will understand the functions and responsibilities of key role players in the accounting profession.
They will gain insight into how different entities influence the standards, ethics, and practices that govern the industry.
Attendees will also learn about the importance of maintaining ethical standards and regulatory compliance in their professional roles.

Event breakdown

Key Topics to be Covered:

Objective of a Compilation Engagement: The objective is to apply accounting expertise to assist management in the preparation of financial statements, based on information provided by management. The practitioner’s role is limited to preparing and presenting the data in a structured financial report.
Responsibilities of Management: Management remains fully responsible for the accuracy, completeness, and presentation of financial statements. The practitioner does not verify the underlying information or provide opinions on its fairness.
Practitioner’s Role: The practitioner’s role is to use their expertise to compile financial information into a coherent and professionally presented set of financial statements. They should ensure that the information conforms to the chosen reporting framework, but they are not required to verify the data.
Engagement Letter: ISRS 4410 mandates that an engagement letter is issued to clearly outline the nature of the compilation, the responsibilities of both the practitioner and management, and the limitations of the engagement.
No Assurance: In a compilation engagement, the accountant compiles financial statements based on information provided by the client without performing an audit or review. As such, ISRS 4410 emphasises that no assurance is provided, meaning the accountant does not verify the accuracy or completeness of the data.
Professional Competence and Due Care: Even though no assurance is provided, ISRS 4410 requires accountants to maintain professional competence and apply due care in the engagement. This means accountants should exercise sound judgment and professional knowledge throughout the process.
Disclosure of No Assurance: The compilation report must include a statement clearly indicating that the financial statements were compiled without performing an audit or review. This ensures transparency to users of the financial statements, such as creditors or stakeholders.
Understanding of the Entity’s Financial Reporting Framework: While no assurance is provided, the accountant must still have a good understanding of the applicable financial reporting framework (e.g., IFRS for SMEs, local GAAP) to ensure that the financial statements are presented appropriately.
Compilation Report: The accountant is required to issue a compilation report that accompanies the financial statements. This report should clarify the nature of the engagement, state that no assurance is provided, and emphasise the client’s responsibility for the financial information.

Certificate

The following event is awarded 3 CPD units in Financial Reporting

Presenter/s

Faith Ngwenya

Faith Ngwenya is a accomplished accounting professional with leadership roles in academia and industry standards, Faith currently supports CIBA’s Technical Team and chairs key industry committees.