In February 2020, the Canadian Auditing and Assurance Standards Board issued a new standard on compilation engagements. Canadian Standard on Related Services 4200, Compilation Engagements (“CSRS 4200”) is effective for compiled financial information for periods ending on or after December 14, 2021. CSRS 4200 replaces existing Section 9200, Compilation Engagements and AuG-5, Compilation Engagements – Financial Statement Disclosures (together, “Section 9200”).
The following summarizes the key differences between CSRS 4200 and Section 9200.
CSRS 4200 is a significant change from Section 9200. All entities should expect to see differences throughout the performance of the compilation engagement. Practitioner’s may ask additional questions with respect to the users of the financial information, the basis of accounting to be applied in the preparation of the financial information and the entity’s business and operations, accounting system and accounting records. Moreover, CSRS 4200 will introduce a new engagement letter and compilation engagement report.
This summary has been prepared for the general information of our clients and should not be considered a substitute for personalized advice related to a particular situation.