Compilation Engagements - AASOC

Apr 20, 2017

At its meeting on April 20, 2017, the AASOC noted that staff and an AASB member conducted cross-country consultations to obtain feedback on the Compilation Engagement Task Force’s discussion paper. The AASB discussed with the AASOC the feedback received on the following key areas: (i) the scope of the standard, including concerns that the change being considered would move many existing compilation engagements to accounting engagements, for which there are no standards. Further, accounting engagements are not regulated by the provincial bodies. Participants in the consultations expressed the view that such change may not be in the public interest. The AASB observed that creating an additional level of engagement to address accounting engagements, as done in the U.S., could add to confusion in the marketplace. The AASB did not conclude on this issue; (ii) the wording and format of the proposed practitioner’s report, including whether such changes would result in users taking assurance when none is provided. The AASB agreed that the wording of the report should reflect the value of a compilation engagement, which results from the practitioner assisting management in preparing and presenting financial information, and involves compliance with professional standards, including ethical requirements; and (iii) to what extent, if any, quality control standards should apply to compilation engagements. Participants in the consultations expressed significant concerns around the application of quality control standards. The AASB has not yet discussed this issue.