Other Canadian Standards

Compilation Engagements

Summary

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.

Staff Contact(s)

Svetlana Berger, CPA, CA, MAcc

Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Invitation to Comment issued in October 2010

    Roundtable sessions conducted in early 2011

  • Approving project

    The AASB approved the project in September 2011

  • Consulting stakeholders

    Exposure Draft issued in September 2018

    Practitioners surveyed on matters related to the scope of the revised compilation engagements standard October 2017

    Lenders surveyed on their perception of compiled financial statements November 2012

    Stakeholders consulted on preliminary views regarding the development of a new compilation engagements standard 2016

  • Deliberating feedback

    The AASB is deliberating feedback received on the Exposure Draft

  • Final pronouncement

Meeting & event summaries


June 10, 2019

AASB Decision Summary — June 10-11, 2019

The AASB discussed key issues stakeholders raised on the Exposure Draft, “Compilation Engagements,” including:

  • the wording and format of the compilation engagement report;
  • the stand back requirement; and
  • the description of the basis of accounting.

At a future meeting, the Board will consider the effective date of the new standard and, if appropriate, approve the final standard.

April 18, 2019

AASB Decision Summary – April 8, 2019 Conference Call

The AASB discussed key issues stakeholders raised related to the Exposure Draft, “Compilation Engagements,” including:

  • engagement acceptance and continuance; and
  • work effort and documentation.

The Board will continue to discuss these issues at a future meeting.

March 4, 2019

AASB Decision Summary — March 4-5, 2019

The AASB discussed key issues stakeholders raised on the Exposure Draft, “Compilation Engagements,” including:

  • the scope of the standard;
  • engagement acceptance and continuance;
  • disclosure of the basis of accounting; and
  • ·obtaining knowledge of the entity.
The Board will continue to discuss these issues at future meetings.

February 11, 2019

AASB Decision Summary — January 24-25, 2019

The AASB discussed some of the key issues stakeholders raised on the Exposure Draft, Compilation Engagements, including:

  • scope of the standard;
  • engagement acceptance and continuance; and
  • disclosure of the basis of accounting.

The Board will continue to discuss these issues at a future meeting.

June 12, 2018

AASB Decision Summary – June 11-12, 2018

The Board discussed issues related to its project to revise Section 9200, Compilation Engagements, including:

  • the scope of the proposed standard;
  • engagement acceptance and continuance; and
  • the proposed effective date of the standard.

The AASB unanimously approved an exposure draft of proposed Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, that would replace Section 9200. The exposure draft is expected to be issued in early September 2018 and will have a response date of late November 2018.

March 6, 2018

AASB Decision Summary – March 5-6, 2018

The Board discussed issues related to its project to revise Section 9200, Compilation Engagements, including:

  • the standard’s scope;
  • whether the practitioner should disclose the basis of accounting, and, if so, how;
  • requirements dealing with the practitioner’s knowledge of the entity; and
  • guidance on compiling the financial information.

The Board anticipates approving an exposure draft of the revised standard at its June 2018 meeting.

January 26, 2018

AASB Decision Summary – January 25-26, 2018

The Board discussed issues identified in developing a revised standard to replace Section 9200, Compilation Engagements, including:

  • the scope of the standard;
  • management’s responsibilities in the terms of the engagement; and
  • requirements dealing with the practitioner’s knowledge of the entity.

The Board anticipates approving the exposure draft of the revised standard in the spring of 2018.

December 5, 2017

AASB Decision Summary – December 4-5, 2017

The Board discussed issues identified in developing a revised standard to replace Section 9200, Compilation Engagements, including:

  • the scope of the standard and what might be excluded;
  • appropriateness of any communication or disclaimer for services outside the compilation engagement standard; and
  • proposed wording for the scope paragraph.

The Board also reviewed feedback collected from the online survey regarding the proposed scope of the standard. Approximately 800 responses were received.

October 18, 2017

AASB Decision Summary – October 16-18, 2017

The Board discussed issues identified in developing a revised standard to replace Section 9200, Compilation Engagements, including requirements related to:

  • the practitioner’s knowledge of the entity;
  • performing the engagement;
  • documentation requirements; and
  • matters affecting engagement acceptance and terms of the engagement.

The Compilation Engagement Task Force also provided an update on the online survey, seeking feedback on proposed changes to the standard. This survey is anticipated to be launched by the end of October 2017.

September 15, 2017

AASB Decision Summary – September 14-15, 2017

The Board discussed issues identified in developing a revised standard to replace Section 9200, Compilation Engagements, including:

  • the scope of the revised standard;
  • the conditions leading to acceptance of a compilation engagement; and
  • the terms of the engagement.

The Board also discussed the Compilation Engagement Task Force’s proposal to conduct an online survey to seek feedback on the scope of the revised standard. The Board supported the proposal, provided input on the survey’s target audience and reviewed the proposed survey questions. This survey will be conducted by the end of 2017.

June 13, 2017

AASB Decision Summary – June 12-13, 2017

The Board discussed issues identified in developing a revised standard to replace Section 9200, Compilation Engagements, including:

  • what should be included in the scope of the standard;
  • whether quality control requirements should be applicable to compilation engagements; and
  • the conditions leading to acceptance of a compilation engagement.

March 7, 2017

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.

October 18, 2016

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.

September 13, 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.

June 14, 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.

March 8, 2016

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.

January 19, 2016

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.

September 18, 2015

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.

June 18, 2013

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.

September 14, 2011

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.’

March 8, 2011

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.

October 26, 2010

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.

News


June 25, 2019

News

Join us! AASB Discussion Group – Finalizing the new Compilation Engagements standard

The AASB is currently working on analyzing the feedback received on our Exposure Draft, Compilation Engagements to finalize a new standard. But we need your help to get to the finish line! Join the AASB Discussion Group - Finalizing the new Compilation Engagements standard, where AASB Principal, Svetlana Berger, will be sharing information, asking questions, and moderating discussion to help us get to a final standard that works for you, our stakeholders.

September 13, 2018

Resource

In Brief Podcast – AASB’s September 2018 Exposure Draft, Compilation Engagements

September 13, 2018.  This Podcast provides a plain and simple overview of AASB’s Exposure Draft, Compilation Engagements.

September 4, 2018

News

AASB Exposure Draft – Compilation Engagements

The AASB has issued an Exposure Draft of a proposed new standard dealing with engagements to compile financial information that would replace the existing Section 9200, Compilation Engagements. Stakeholders are encouraged to submit their comments by November 30, 2018.

September 4, 2018

News

In Brief – A plain and simple overview of the AASB’s Exposure Draft, Compilation Engagements

September 4, 2018. The AASB has issued an Exposure Draft, Compilation Engagements, to replace the current standard, which has not been significantly revised in many years. The proposals would significantly change the communication attached to compiled financial information and could affect the way practitioners perform the engagement. Read our In Brief for an overview of the key improvements the AASB is suggesting.

September 4, 2018

Document for Comment

Invitation for Field Testing Opportunity – New Proposed Standard for Compilation Engagements

September 4, 2018. Are you a practitioner who performs compilation engagements? Field test the Exposure Draft, Compilation Engagements, on a retrospective basis against a recently completed file. Testing will be followed by a discussion session to share your experiences on November 26, 2018. Registration closes on October 1, 2018. Register today!

September 4, 2018

News

Roundtable Discussions – Stakeholder views needed on the new proposed standard for Compilation Engagements

September 4, 2018. You are invited to attend a roundtable discussion to discuss the new Exposure Draft, Compilation Engagements. Roundtable discussions are taking place in multiple locations across Canada this October, including via video conference. Register today!

August 14, 2018

News

Webinar – Toward a New Standard on Compilation Engagements

August 14, 2018. Tune in to this webinar on September 26 (English) and September 28 (French) to learn about the AASB Exposure Draft for CSRS 4200, Compilation Engagements, and how you can provide input to our proposals.

July 23, 2018

News

Approved! Exposure Draft of a Proposed New Standard on Compilation Engagements

The AASB unanimously approved an exposure draft of a proposed new standard on compilation engagements to replace Section 9200, Compilation Engagements. Set to be issued September 4, 2018, comments will be due November 30, 2018. To support you in providing feedback, we are doing extensive outreach and will be issuing numerous plain language resources. Stay tuned for more!

October 24, 2017

News

Survey – Views on the Scope of the Revised Standard on Compilation Engagements

October 24, 2017. Are you a practitioner who sometimes finds the lines blurred between an accounting service and a compilation engagement? Help the AASB decide what revisions are needed to the scope of Section 9200, Compilation Engagements. Complete this 20-minute survey by November 13, 2017.

November 23, 2016

News

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!

August 15, 2014

News

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.

November 6, 2012

News

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.

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.