What you need to know about CSRS 4200
The most significant changes include:
- The services that fall under the definition of a compilation engagement have been more clearly defined. This may impact whether a compilation engagement is required.
- A new note describing the basis of accounting must be included with the compiled financial information.
- A new compilation engagement report will replace the existing Notice to Reader communication under Section 9200 Compilation Engagements.
- A minimum level of documentation is now required as well as certain acknowledgements from management.
In the following article, our advisors offer guidance to help management navigate this significant change, including:
- Why the new standard is needed and its benefits
- A summary of expected changes to the delivery of compilation engagements
- An outline of the basis of accounting note requirement
- Discussing the basis of accounting with third party users of the financial information
- What will be included in the new compilation engagement report
- Determining if a compilation engagement is right for you
This article outlines the new Canadian Standard on Related Services (CSRS) 4200 Compilation Engagements for management.