Compilation Engagements

Current Status Next Steps

Exposure draft being developed.

Second half of 2017 – Exposure draft to be approved.


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.

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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.



AASB Decision Summary – March 6-7, 2017
The AASB received a report on the feedback collected during the roundtables held with stakeholders on the Consultation Paper, “Compilation Engagements: Exploring Options for Change.”  Issues discussed by the AASB included:

  • the scope of a compilation engagement; and
  • the compilation engagement report.

The AASB will continue to discuss issues at its June 2017 meeting.

Roundtable Discussions – Stakeholders’ Views Sought on a Compilation Engagements Task Force Consultation Paper
November 23, 2016. Register to attend a roundtable to provide your views directly to the AASB’s Compilation Engagements Task Force on its Consultation Paper.  Discussions are taking place in cities across the country. Seating is limited so register today!

AASB Decision Summary – October 17-18, 2016
The AASB discussed issues related to its project to develop a revised standard for compilation engagements, including engagement acceptance and continuance.  The AASB also reviewed its Compliance Engagement Task Force’s draft consultation paper. The Task Force intends to use the paper as a basis for broad-based consultations on the project, including roundtable sessions across Canada commencing in late 2016.

AASB Decision Summary – September 12-13, 2016
The AASB discussed issues related to its compilation engagements project, including:

  • the scope and definition of a compilation engagement;
  • engagement acceptance and continuance;
  • documentation requirements;
  • whether CSQC 1,  Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements, should be applicable to compilation engagements; and
  • whether communication with management and those charged with governance is needed.

The AASB also agreed that the project is at an appropriate stage for its task force to obtain input from Canadian stakeholders. The input will focus on tentative conclusions the task force reached on how to address public interest issues identified to date. The task force is planning outreach beginning in November 2016.

AASB Decision Summary – June 13-14, 2016
The AASB discussed issues related to its project to revise Section 9200, Compilation Engagements, including:

  • the definition of a compilation engagement;
  • the intended scope of the standard;
  • whether there is a need for requirements dealing with quality control;
  • work effort; and
  • reporting requirements.

The AASB also considered a preliminary plan to consult with stakeholders as the project develops, emphasizing the need for focused discussions with affected practitioners as the AASB develops an exposure draft.

AASB Decision Summary – March 7- 8, 2016
The AASB discussed issues related to its project to revise Section 9200, Compilation Engagements, including:

  • public interest issues to be addressed by the project;
  • the definition of a compilation engagement;
  • the practitioner’s work effort; and
  • proposed communication between the auditor and the entity.

AASB Decision Summary – January 18-19, 2016
The AASB discussed issues related to its project to revise Section 9200, Compilation Engagements, including:

  • whether the revised standard should acknowledge the use of financial statements compiled under Section 9200 and the accompanying report by users other than management; and
  • whether the revised standard should require a disclosure of the basis of accounting followed by management.

The AASB also supported expanding the composition of the Compilation Engagements Task Force to include an observer from the lending community.

AASB Decision Summary – September 16-18, 2015 
The AASB discussed preliminary issues related to its project to revise Section 9200, Compilation Engagements. These include whether:

  • consultations with lenders performed to date have provided sufficient information for the AASB and its Compilation Engagements Task Force;
  • guidance should be included for situations when the engagement is not within the scope of the revised standard; and
  • the revised standard should be premised on the principle that compiled financial statements are for use by management only.

The AASB will continue to discuss these and other issues at future meetings.

Volunteer Opportunity – Compilation Engagements Task Force
August 15, 2014.  The AASB is currently seeking members for its new Compilation Engagements Task Force. Applications should be submitted no later than Friday, October 10, 2014.

AASB Decision Summary – June 17-18, 2013
The AASB discussed the results of the survey, “Lenders’ Perceptions of Compiled Financial Statements.” The AASB asked staff and the task force to consider holding further consultations with users of compiled financial statements and possibly practitioners, to obtain more in-depth feedback on issues identified by the survey.

Survey – Lenders’ Perception of Compiled Financial Statements
November 6, 2012. Are you a loan officer? If so, take this survey to provide your views on compiled financial statements, accompanied by a Notice to Reader, and their significance in making lending decisions for SMEs.

AASB Decision Summary – September 12-14, 2011
The AASB discussed matters related to the IAASB’s project to revise ISRS 4410, Compilation Engagements. The AASB also approved a project proposal to revise Section 9200, Compilation Engagements. Initially, this project will focus on conducting research to obtain the views of users of compiled financial statements on whether their needs are being met.’

AASB Decision Summary – March 7-8, 2011
The AASB reviewed a summary of the discussions and issues raised by participants at roundtable sessions conducted by the AASB staff to obtain input from practitioners on matters related to compilation engagements. The AASB also reviewed comments received from Canadian stakeholders on the Invitation to Comment on the IAASB’s Exposure Draft of revisions to ISRS 4410, Compilation Engagements, and discussed a draft response letter to the IAASB’s Exposure Draft.

AASB Decision Summary – October 26. 2010
The AASB discussed and approved issuance of an Invitation to Comment (ITC) on the IAASB’s Exposure Draft of International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements. The ITC is expected to be issued by early November 2010 with a response deadline of February 1, 2011.


Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.