The International Auditing and Assurance Standards Board has released a revised standard for compilation engagements, specially enhanced for the needs of small and midsized entities.

The International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements, released by the IAASB on Friday. addresses service engagements for SMEs, but is also applicable for larger businesses. The IAASB operates under the auspices of the International Federation of Accountants.

“This is an important standard in the many jurisdictions where compilation engagements are commonplace, but also in jurisdictions where it is a relatively new service. This enhanced standard contributes to quality in these important engagements and ensures clear communications to users,” said IAASB Chairman Arnold Schilder in a statement. “While the standard is applicable to entities of all sizes and for all forms of historical financial information, the needs of SMEs, users of their financial information, and those who provide compilation services were key focus areas in our deliberations.”

ISRS 4410 (Revised) clarifies the practitioner’s role and responsibilities in a compilation engagement and matters that need to be considered when accepting such engagements. The standard emphasizes the importance of quality control. It also expands the traditional compilation engagement report to make clear to users the practitioner’s contribution to the compiled financial information presented by management, and the key features of a compilation engagement.

The revised standard is effective for compilation engagement reports dated on or after July 1, 2013.

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