A Chartered Accountant has been requested to undertake a compilation engagement for preparation of financial information of an entity. The financial…

(a) As per SRS 4410 “Compilation Engagements", the practitioner shall not accept the engagement unless the practitioner has agreed the terms of engagement with management, and the engaging party if different, including: (a) The intended use and distribution of the financial information, and any restrictions on either its use or its distribution where applicable. (b) Identification of the applicable financial reporting framework. (c) The objective and scope of the compilation engagement. (d) The responsibilities of the practitioner, including the requirement to comply with relevant ethical requirements. (e) The responsibilities of management for (i) The financial information, and for the preparation and presentation thereof, in accordance with a financial reporting framework that is acceptable in view of the intended use of the financial information and the intended users (ii) Design, implementation and maintenance of such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error (iii) The accuracy and completeness of the records, documents, explanations and other information provided by management for the compilation engagement and (iv) Judgments needed in the preparation and presentation of the financial information, including those for which the practitioner may provide assistance in the course of the compilation engagement (f) The expected form and content of the practitioner's report.