Presentation by Simant Prakash, IFAC SMP Forum June 2013

1. How SMPs are Adapting to Change
through New Service Offerings and
Better Practice Management
Presenter: Simant Prakash
Partner Designate,
RSM Ashvir

3. REVIEW
COMPILATION
ASSURANCE
ENGAGEMENTS
AUP
ASSURANCE REPORT STANDARD
LIMITED
ASSURANCE
CONCLUSION
(NEGATIVE
ASSURANCE)
ISRE 2400
NO ASSURANCE NO CONCLUSION
(REPORT ON
COMPILATION)
ISRS 4410
NO ASSURANCE NO CONCLUSION
(REPORT ON
FACTUAL
FINDING)
ISRS 4400
REASONABLE OR
LIMITED
ASSURANCE
OPINION
/CONCLUSION
ISAE 3000, 3402,
3410,3420

4. Reviews - ISRE 2400
Apply when practioner is NOT the independent auditor
of the entity
Limited assurance
Evidence gathering to support the conclusion (evidence
based review)
Primarily consists of inquiries and analytics
Existence of reliable accounting system and an
acceptable financial reporting framework
In some cases required by law or regulations when an
audit is not required

5. Compilations - ISRS 4410
No assurance
Assisting management with preparation and
presentation of financial information in accordance
with an applicable financial reporting framework
Useful in SMEs which have external financial reporting
requirements e.g. to financiers/revenue authorities
Practitioners involvement increases the user
confidence

6. Agreed Upon Procedures – ISRS 4400
No assurance
Factual findings from performing specified
procedures
Useful alone or in conjunction with compilations to
meet specific user needs

7. Assurance engagements
 International Framework on Assurance engagements
ISAE 3000 – Other than audit or review of historical
information
 ISAE 3402 – Assurance reports on controls at service
organisation
 ISAE 3410 - Assurance reports on Green House Gas
Statements (New*)
ISAE 3420 - Assurance Engagements to Report on the
Compilation of Pro Forma Financial Information (PFI)
Included in a prospectus (New*)

8. Opportunity
Regulatory trends (rotation of audit firms,
Independence/conflict of interest)
 Meet specific needs of SMEs. Building
panels/associations to source skill gaps
Leveraging technology to provide cost effective services
tailored to needs of SMEs
Scalability from no assurance to reasonable assurance
Consolidation
Involvement with policy setters in the country

9. Challenges
Regulatory trends (Audit thresholds,
Independence/conflict of interest)
 Building knowledge specialisation (understanding
accounting framework, industry information and
benchmarking, techniques for alternative offering)
Audit scaling (Practioners performing more procedures
than required)
Fee levels (balancing quality and profitability)
Availability and retention of quality staff

10. Better Practice Management
 Approachibility
 Confidentiality
 Understand the drivers of demand for your services (strong
brand, quality work, efficiency, competitive fees)
 Understand the drivers of price for your services (quality
perception, availability of competitors)
Leveraging technology
 Building the human capital of your firm
 Understand your client mix and opportunities for increasing
your share of annual client spend

11. Better Practice Management
Probabilityoftechnicalsuccess
PEARL BREAD AND BUTTER
High reward
Low reward-but no brainer projects
i.e. low time cost
OYESTER WHITE ELEPHANTS
Good fees but low likelihood of technical
success. Technical breakthrough will pave
way for solid fees.
Low technical success and low fees.
High time cost and difficult to kill the
project in time. Can send company
broke.
NPV (Reward)

12. This slide presentation has been prepared for general guidance only, and does not constitute professional
advice. You should not act upon the information contained in these slides without obtaining specific professional
advice. Accordingly, RSM Ashvir, its associates and its employees and agents accept no liability, and disclaim all
responsibility, for the consequences of anyone acting, or refraining from acting, in reliance on the information
contained in these slides or for any decision based on it, or for any consequential, special or similar damages
even if advised of the possibility of such damages.
The guidance reflects personal views of the presenter.
RSM Ashvir is a member firm of RSM International, a worldwide network of accounting and consulting firms.
RSM International does not offer professional services in its own name. Each member firm of RSM International
is a legally separate and independent national firm and is not a member of one international partnership, and
member firms are not legal partners with each other. One member firm is not responsible for the services or acts
of any other member firm.

13. THANK YOU