This document establishes standards for compilation engagements in India. The objective of a compilation engagement is for an accountant to use accounting expertise to collect, classify, and summarize financial information, without testing assertions. Management is responsible for the financial information and internal controls. The accountant plans procedures, documents work, obtains an understanding of the entity and basis of accounting, and considers whether the information appears appropriate. If aware of material misstatements, the accountant should withdraw. The report should be titled "Accountant's Report on Compilation of Unaudited Financial Statements."
The document discusses cash flow statements, including:
1. Cash flow statements describe changes in cash between periods by showing cash inflows and outflows from operating, investing, and financing activities.
2. The purpose is to provide information about a company's gross receipts and payments over a period of time to assess liquidity and profitability.
3. Advantages include ascertaining liquidity, determining optimal cash balances, cash management, and performance evaluation.
Preparation of financial statements using incomplete recordsSheham Aliyar
This document discusses techniques for preparing financial statements using incomplete records, including constructing opening and closing balance sheets to calculate profit or loss based on changes in capital amounts. It provides examples of using cash/bank summaries to calculate missing sales or purchase amounts, constructing control accounts to calculate missing sales figures, and using gross/net profit percentages to calculate missing costs, sales, or stock amounts from available data. The examples walk through calculations of profit, closing stock, and preparing statements of profit or loss based on incomplete records about assets, liabilities, capital introduced or withdrawn, and gross profit percentages.
This document discusses the management of cash. It begins by defining cash and its importance as the most liquid asset. It then discusses determining the optimal cash balance, collecting cash efficiently from receivables, and disbursing cash payments in a timely manner. The document outlines various motives for holding cash like transaction, precautionary and speculative motives. It also discusses objectives of cash management like maintaining an optimal cash balance.
This document provides an introduction to financial accounting. It discusses the development of accounting from ancient texts through modern times. Accounting involves recording, classifying, summarizing, analyzing and communicating financial transactions. The main users of accounting information are proprietors, managers, creditors, bankers, investors and governments. Accountants work either in public practice providing auditing and other services, or employed within businesses. The objectives of financial accounting are to keep records, protect assets, determine profits/losses, ascertain financial position and facilitate decision making.
MCB Islamic Bank Internship Report - UCP - 2019FaHaD .H. NooR
The document is an internship report for MCB Islamic Bank Limited. It includes sections on the organizational profile, departments, personal experiences, recommendations, and a comparison of theoretical versus practical knowledge. The key points are:
- The intern worked in the HR department's Learning & Development unit, performing tasks like updating training records and files.
- Main bank departments observed were HR, Finance, Internal Audit, IT, and Administration.
- Personal experiences included gaining skills like patience, teamwork, and learning office management. Problems identified included a lack of benefits and motivations for employees.
- Recommendations included converting to online banking, implementing a reward system, and adding curricular activities to relieve employee stress
E banking system benefits and challengesabhijith00007
This document discusses e-banking (online banking) in India, including its benefits and challenges. Some key benefits of e-banking are convenience, lower costs, and increased accessibility. However, security risks, lack of trust, customer awareness, and technology implementation challenges have hindered e-banking adoption. Rural untapped markets and increasing internet/computer literacy present opportunities. Overall, while e-banking faces obstacles, it provides improved customer service and will be important for banks in India going forward.
The document outlines the steps for completing incomplete accounting records:
1) Prepare an opening statement of affairs with headings like assets, liabilities, capital.
2) Set up control accounts for debtors, creditors, cash, and the bank account.
3) Insert available figures and calculate any missing values, like gross profit or fixed assets.
4) Draft the required statements, including profit and loss, balance sheet.
BRAC Bank Limited is a commercial bank in Bangladesh that focuses on providing banking services to small and medium enterprises. It has a vision of being the market leader through supporting corporate and small businesses. The report provides an overview of BRAC Bank, including its corporate vision, mission, values and departments. It then focuses on BRAC Bank's small and medium enterprise division, describing the history, importance, products, network coverage, selection process, loan process and monitoring of SME clients. The report also discusses strategies like market concentration and product diversification that are important for expanding BRAC Bank's SME business.
The document discusses cash flow statements, including:
1. Cash flow statements describe changes in cash between periods by showing cash inflows and outflows from operating, investing, and financing activities.
2. The purpose is to provide information about a company's gross receipts and payments over a period of time to assess liquidity and profitability.
3. Advantages include ascertaining liquidity, determining optimal cash balances, cash management, and performance evaluation.
Preparation of financial statements using incomplete recordsSheham Aliyar
This document discusses techniques for preparing financial statements using incomplete records, including constructing opening and closing balance sheets to calculate profit or loss based on changes in capital amounts. It provides examples of using cash/bank summaries to calculate missing sales or purchase amounts, constructing control accounts to calculate missing sales figures, and using gross/net profit percentages to calculate missing costs, sales, or stock amounts from available data. The examples walk through calculations of profit, closing stock, and preparing statements of profit or loss based on incomplete records about assets, liabilities, capital introduced or withdrawn, and gross profit percentages.
This document discusses the management of cash. It begins by defining cash and its importance as the most liquid asset. It then discusses determining the optimal cash balance, collecting cash efficiently from receivables, and disbursing cash payments in a timely manner. The document outlines various motives for holding cash like transaction, precautionary and speculative motives. It also discusses objectives of cash management like maintaining an optimal cash balance.
This document provides an introduction to financial accounting. It discusses the development of accounting from ancient texts through modern times. Accounting involves recording, classifying, summarizing, analyzing and communicating financial transactions. The main users of accounting information are proprietors, managers, creditors, bankers, investors and governments. Accountants work either in public practice providing auditing and other services, or employed within businesses. The objectives of financial accounting are to keep records, protect assets, determine profits/losses, ascertain financial position and facilitate decision making.
MCB Islamic Bank Internship Report - UCP - 2019FaHaD .H. NooR
The document is an internship report for MCB Islamic Bank Limited. It includes sections on the organizational profile, departments, personal experiences, recommendations, and a comparison of theoretical versus practical knowledge. The key points are:
- The intern worked in the HR department's Learning & Development unit, performing tasks like updating training records and files.
- Main bank departments observed were HR, Finance, Internal Audit, IT, and Administration.
- Personal experiences included gaining skills like patience, teamwork, and learning office management. Problems identified included a lack of benefits and motivations for employees.
- Recommendations included converting to online banking, implementing a reward system, and adding curricular activities to relieve employee stress
E banking system benefits and challengesabhijith00007
This document discusses e-banking (online banking) in India, including its benefits and challenges. Some key benefits of e-banking are convenience, lower costs, and increased accessibility. However, security risks, lack of trust, customer awareness, and technology implementation challenges have hindered e-banking adoption. Rural untapped markets and increasing internet/computer literacy present opportunities. Overall, while e-banking faces obstacles, it provides improved customer service and will be important for banks in India going forward.
The document outlines the steps for completing incomplete accounting records:
1) Prepare an opening statement of affairs with headings like assets, liabilities, capital.
2) Set up control accounts for debtors, creditors, cash, and the bank account.
3) Insert available figures and calculate any missing values, like gross profit or fixed assets.
4) Draft the required statements, including profit and loss, balance sheet.
BRAC Bank Limited is a commercial bank in Bangladesh that focuses on providing banking services to small and medium enterprises. It has a vision of being the market leader through supporting corporate and small businesses. The report provides an overview of BRAC Bank, including its corporate vision, mission, values and departments. It then focuses on BRAC Bank's small and medium enterprise division, describing the history, importance, products, network coverage, selection process, loan process and monitoring of SME clients. The report also discusses strategies like market concentration and product diversification that are important for expanding BRAC Bank's SME business.
This document discusses short-term financial management and managing the cash conversion cycle. It covers key aspects like the operating cycle, cash conversion cycle, inventory management techniques like EOQ and JIT. It also discusses accounts receivable management including credit policies, collection policies, and receipts and disbursements management to reduce float. Current liabilities management concerning accounts payable and payment periods is also summarized. The overall goal of short-term financial management is to balance profitability and risk related to working capital management.
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
Clearing is the mutual settlement of claims among member banks for instruments like cheques drawn on one another. It involves member banks meeting at an agreed time and place to settle the net amounts payable or receivable. There are different types of clearing including counter, MICR, and cheque truncation system clearing. Clearing can also be classified as inward, inward returns, outward, and outward returns depending on whether the bank is receiving or sending instruments for collection.
1. Management of cash involves preparing cash budgets to forecast cash inflows and outflows. This helps control cash levels and ensure adequate funds are available.
2. Techniques to control cash inflows include concentration banking and lockbox systems which speed up collection of receipts. Controlling outflows aims to delay payments as much as possible.
3. Surplus cash beyond normal requirements can be invested optimally using models like Baumol and Miller-Orr that balance carrying costs of holding cash versus transaction costs of converting investments to cash.
This document provides details about Ujjala Fatima's 6-week internship at MCB Bank in Lahore, Pakistan. It includes an introduction to MCB Bank's history dating back to 1947, as well as its vision, mission, values, management structure, products, financial performance, SWOT analysis, and training programs. The internship report aims to describe Ujjala's experiences and lessons learned during her time working in various departments at the bank.
Internship report on electronic banking activities of Rupali Bank Ltd._2018_I...ImranSheikh72
This document is BorhanUddinChowdhury's internship report submitted to the Department of Accounting and Information Systems at the University of Rajshahi. It assesses the electronic banking activities of Rupali Bank Limited's RUET branch in Rajshahi. The report contains 7 chapters, including an introduction describing the objectives and methodology of the study, an overview of Rupali Bank and the RUET branch, an analysis of electronic banking services offered, outcomes of the internship program, and conclusions with recommendations. The primary objective is to observe and assess the overall e-banking activities at the RUET branch to evaluate implementation and customer satisfaction of services.
Advansed Accounting Ch 1: The Equity Method of Accounting for InvestmentsAbdulkadir Molla
This document discusses the equity method of accounting for investments. It covers several key points:
1. The equity method is used when an investor has significant influence over an investee, usually through owning 20-50% of the investee's voting stock.
2. Under the equity method, the investment is initially recorded at cost. The carrying amount is then increased or decreased to recognize the investor's share of the investee's earnings or losses after acquisition.
3. Journal entries are made to increase the investment for the investor's share of earnings, and decrease it for dividends received from the investee. This matches the investor's income recognition with that of the investee.
4. There may
ECS (Electronic Clearing Service) allows for electronic funds transfer between bank accounts using a clearing house. It facilitates bulk payments from one account to many accounts (ECS Credits) or collection of funds from many accounts to one account (ECS Debits). The process involves an ECS user initiating transactions by submitting data to a clearing house, which then debits the user's sponsor bank and credits recipient banks for onward crediting to beneficiary accounts. This electronic system provides advantages over paper-based payments like avoiding loss of instruments and ensuring timely credit of funds.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
Cheque Truncation System (CTS)
Cheque Truncation System: Cheque Truncation System (CTS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques.
Infrastructure Required- Point of Truncation:
Image
Cheque scanner
Hardware
Software
Network
WORKING OF CTS:In the earlier system, customer presented the cheque to the bank which sent the cheque to the clearing house, after which money would be credited to your account.
It usually takes 3-4 days for the physical transfer of cheques and amount to transfer.
CTS clears cheques electronically.
Physical transfer of cheques between banks has ended.
• Now it on average takes 1 day to clear and transfer the amount.
Process of CTS:The cheque is captured by the presenting bank (collecting bank) through a ‘Capture System’
An encrypted format to the ‘Clearing House’, from where it will be sent to the paying bank
A clearing House Interface, which is sort of a gateway.
Presentation Clearing’, which involves the process of data reading.
The payment is processed
Benefits of CTS:Benefits to customer:
No fear of loss of cheque in transit
Faster credit of funds to customer’s account
More secure
Lesser chances of fraud
Multi-city cheques could be cleared on the same day
Benefits of CTS:Benefits to Banks:
Reduction in cost of transit and errors to manual work
Verification will also be faster
Shorter clearing cycle
Operational efficiency
Reduction risks involving paper sharing
Thank you
This document discusses various activity and efficiency ratios used to measure the operational performance of a business. It defines stock turnover ratio, debtors turnover ratio, creditors turnover ratio, and working capital turnover ratio. For stock turnover ratio, it provides the calculation and explains that a higher ratio indicates more efficient inventory management. It also defines inventory conversion period and average collection period as metrics related to stock and debtors turnover ratios.
This document discusses two cash management models: William J. Baumol's inventory model and M. H. Miller and Daniel Orr’s stochastic model. Baumol's model determines optimal cash balance by minimizing holding and transaction costs under certainty. Miller and Orr's model accounts for stochastic cash flows by setting upper and lower control limits for cash balances and buying/selling securities as needed. Both models aim to help companies manage cash balances efficiently.
This document discusses various financial ratios used to analyze a company's financial statements. It defines key ratios such as current ratio, quick ratio, debt ratio, return on assets, gross profit margin, and dividend payout ratio. It explains how these ratios are calculated using figures from the income statement, balance sheet, and statement of cash flows. The ratios allow comparisons of a company's performance over time and against other companies to evaluate liquidity, profitability, leverage, and dividend policies.
Banking a New Generation - Youth BankingDaniel Emeka
The document discusses the importance of banking children and youth to empower them to become productive economic citizens. It notes that children and youth are future economic actors and providing them financial competencies and prosperity has meaningful impacts. The document then defines different age groups of children/youth and their varying financial independence, needs, and circumstances. It emphasizes the need for financial education tailored for each group. The document also discusses marketing strategies for engaging children/youth, including relationship marketing through social networks and influencers. It proposes using promotional mascots and materials to introduce a new banking product for children/youth focused on friendship and teamwork.
This document was prepared by Emdadul Haque, Nasim Ahmed Chowdhury, and Masnun Akib for Rushdy Md. Bakht of the Department of Accounting and Finance at the School of Business and Economics of North South University.
Electronic clearing service (ecs) mayank saxena srmsibsMayank Saxena
1) Electronic Clearing Service (ECS) is an electronic mode of payment/receipt for repetitive and periodic transactions. It is used for bulk payments like salaries, dividends, and collections like bills.
2) ECS has two variants - ECS Credit and ECS Debit. ECS Credit is used for payments while ECS Debit is used for collections.
3) ECS provides benefits like convenience, safety, and low costs for customers and companies compared to physical transactions. It simplifies bulk payments and collections without the need for frequent visits to banks.
The document is an internship report submitted by Hidayat Ullah about his internship at the MCB Bank Limited Kohat City Branch in Pakistan. It provides details about MCB Bank such as its vision, mission, objectives, and core values. It also describes the different departments in the Kohat City Branch and the work done by the intern during the 8-week internship period.
This document is a project report on mobile banking services provided by HDFC Bank. It provides information on HDFC Bank and introduces their mobile banking services. It describes how customers can access their bank accounts through mobile apps, SMS banking, and via the mobile browser. It outlines several key mobile banking services offered by HDFC like funds transfer, bill payments, prepaid reloads, and checking credit card details. The conclusion discusses the popularity of mobile banking among young customers and the need for banks to increase awareness and address security concerns.
Internship Certificate of Janata Bank LimitedReaZ SaFayaT
Reaz Al Safayat Chowdhury, a BBA student at Jagannath University majoring in Accounting & Information Systems, successfully completed a 3-month internship at Janata Bank Limited, Feni Corporate Branch from May 18, 2016 to August 17, 2016. Under the supervision of the branch, he explored the general functions of the bank, particularly general banking. The certificate confirms he maintained enthusiasm and diligence throughout the internship, and the experience will benefit his future professional career.
The PSRE 2400 document:
1) Establishes the objective of a review engagement is to enable the auditor to state whether anything has come to their attention that causes them to believe the financial statements are not prepared in accordance with accounting principles (provide negative assurance).
2) Details the general principles, scope, level of assurance (moderate), terms of engagement including planning, work performed by others, documentation, procedures, conclusions and reporting for a review engagement.
3) Provides appendices including an example engagement letter, detailed review
This document discusses short-term financial management and managing the cash conversion cycle. It covers key aspects like the operating cycle, cash conversion cycle, inventory management techniques like EOQ and JIT. It also discusses accounts receivable management including credit policies, collection policies, and receipts and disbursements management to reduce float. Current liabilities management concerning accounts payable and payment periods is also summarized. The overall goal of short-term financial management is to balance profitability and risk related to working capital management.
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
Clearing is the mutual settlement of claims among member banks for instruments like cheques drawn on one another. It involves member banks meeting at an agreed time and place to settle the net amounts payable or receivable. There are different types of clearing including counter, MICR, and cheque truncation system clearing. Clearing can also be classified as inward, inward returns, outward, and outward returns depending on whether the bank is receiving or sending instruments for collection.
1. Management of cash involves preparing cash budgets to forecast cash inflows and outflows. This helps control cash levels and ensure adequate funds are available.
2. Techniques to control cash inflows include concentration banking and lockbox systems which speed up collection of receipts. Controlling outflows aims to delay payments as much as possible.
3. Surplus cash beyond normal requirements can be invested optimally using models like Baumol and Miller-Orr that balance carrying costs of holding cash versus transaction costs of converting investments to cash.
This document provides details about Ujjala Fatima's 6-week internship at MCB Bank in Lahore, Pakistan. It includes an introduction to MCB Bank's history dating back to 1947, as well as its vision, mission, values, management structure, products, financial performance, SWOT analysis, and training programs. The internship report aims to describe Ujjala's experiences and lessons learned during her time working in various departments at the bank.
Internship report on electronic banking activities of Rupali Bank Ltd._2018_I...ImranSheikh72
This document is BorhanUddinChowdhury's internship report submitted to the Department of Accounting and Information Systems at the University of Rajshahi. It assesses the electronic banking activities of Rupali Bank Limited's RUET branch in Rajshahi. The report contains 7 chapters, including an introduction describing the objectives and methodology of the study, an overview of Rupali Bank and the RUET branch, an analysis of electronic banking services offered, outcomes of the internship program, and conclusions with recommendations. The primary objective is to observe and assess the overall e-banking activities at the RUET branch to evaluate implementation and customer satisfaction of services.
Advansed Accounting Ch 1: The Equity Method of Accounting for InvestmentsAbdulkadir Molla
This document discusses the equity method of accounting for investments. It covers several key points:
1. The equity method is used when an investor has significant influence over an investee, usually through owning 20-50% of the investee's voting stock.
2. Under the equity method, the investment is initially recorded at cost. The carrying amount is then increased or decreased to recognize the investor's share of the investee's earnings or losses after acquisition.
3. Journal entries are made to increase the investment for the investor's share of earnings, and decrease it for dividends received from the investee. This matches the investor's income recognition with that of the investee.
4. There may
ECS (Electronic Clearing Service) allows for electronic funds transfer between bank accounts using a clearing house. It facilitates bulk payments from one account to many accounts (ECS Credits) or collection of funds from many accounts to one account (ECS Debits). The process involves an ECS user initiating transactions by submitting data to a clearing house, which then debits the user's sponsor bank and credits recipient banks for onward crediting to beneficiary accounts. This electronic system provides advantages over paper-based payments like avoiding loss of instruments and ensuring timely credit of funds.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
Cheque Truncation System (CTS)
Cheque Truncation System: Cheque Truncation System (CTS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques.
Infrastructure Required- Point of Truncation:
Image
Cheque scanner
Hardware
Software
Network
WORKING OF CTS:In the earlier system, customer presented the cheque to the bank which sent the cheque to the clearing house, after which money would be credited to your account.
It usually takes 3-4 days for the physical transfer of cheques and amount to transfer.
CTS clears cheques electronically.
Physical transfer of cheques between banks has ended.
• Now it on average takes 1 day to clear and transfer the amount.
Process of CTS:The cheque is captured by the presenting bank (collecting bank) through a ‘Capture System’
An encrypted format to the ‘Clearing House’, from where it will be sent to the paying bank
A clearing House Interface, which is sort of a gateway.
Presentation Clearing’, which involves the process of data reading.
The payment is processed
Benefits of CTS:Benefits to customer:
No fear of loss of cheque in transit
Faster credit of funds to customer’s account
More secure
Lesser chances of fraud
Multi-city cheques could be cleared on the same day
Benefits of CTS:Benefits to Banks:
Reduction in cost of transit and errors to manual work
Verification will also be faster
Shorter clearing cycle
Operational efficiency
Reduction risks involving paper sharing
Thank you
This document discusses various activity and efficiency ratios used to measure the operational performance of a business. It defines stock turnover ratio, debtors turnover ratio, creditors turnover ratio, and working capital turnover ratio. For stock turnover ratio, it provides the calculation and explains that a higher ratio indicates more efficient inventory management. It also defines inventory conversion period and average collection period as metrics related to stock and debtors turnover ratios.
This document discusses two cash management models: William J. Baumol's inventory model and M. H. Miller and Daniel Orr’s stochastic model. Baumol's model determines optimal cash balance by minimizing holding and transaction costs under certainty. Miller and Orr's model accounts for stochastic cash flows by setting upper and lower control limits for cash balances and buying/selling securities as needed. Both models aim to help companies manage cash balances efficiently.
This document discusses various financial ratios used to analyze a company's financial statements. It defines key ratios such as current ratio, quick ratio, debt ratio, return on assets, gross profit margin, and dividend payout ratio. It explains how these ratios are calculated using figures from the income statement, balance sheet, and statement of cash flows. The ratios allow comparisons of a company's performance over time and against other companies to evaluate liquidity, profitability, leverage, and dividend policies.
Banking a New Generation - Youth BankingDaniel Emeka
The document discusses the importance of banking children and youth to empower them to become productive economic citizens. It notes that children and youth are future economic actors and providing them financial competencies and prosperity has meaningful impacts. The document then defines different age groups of children/youth and their varying financial independence, needs, and circumstances. It emphasizes the need for financial education tailored for each group. The document also discusses marketing strategies for engaging children/youth, including relationship marketing through social networks and influencers. It proposes using promotional mascots and materials to introduce a new banking product for children/youth focused on friendship and teamwork.
This document was prepared by Emdadul Haque, Nasim Ahmed Chowdhury, and Masnun Akib for Rushdy Md. Bakht of the Department of Accounting and Finance at the School of Business and Economics of North South University.
Electronic clearing service (ecs) mayank saxena srmsibsMayank Saxena
1) Electronic Clearing Service (ECS) is an electronic mode of payment/receipt for repetitive and periodic transactions. It is used for bulk payments like salaries, dividends, and collections like bills.
2) ECS has two variants - ECS Credit and ECS Debit. ECS Credit is used for payments while ECS Debit is used for collections.
3) ECS provides benefits like convenience, safety, and low costs for customers and companies compared to physical transactions. It simplifies bulk payments and collections without the need for frequent visits to banks.
The document is an internship report submitted by Hidayat Ullah about his internship at the MCB Bank Limited Kohat City Branch in Pakistan. It provides details about MCB Bank such as its vision, mission, objectives, and core values. It also describes the different departments in the Kohat City Branch and the work done by the intern during the 8-week internship period.
This document is a project report on mobile banking services provided by HDFC Bank. It provides information on HDFC Bank and introduces their mobile banking services. It describes how customers can access their bank accounts through mobile apps, SMS banking, and via the mobile browser. It outlines several key mobile banking services offered by HDFC like funds transfer, bill payments, prepaid reloads, and checking credit card details. The conclusion discusses the popularity of mobile banking among young customers and the need for banks to increase awareness and address security concerns.
Internship Certificate of Janata Bank LimitedReaZ SaFayaT
Reaz Al Safayat Chowdhury, a BBA student at Jagannath University majoring in Accounting & Information Systems, successfully completed a 3-month internship at Janata Bank Limited, Feni Corporate Branch from May 18, 2016 to August 17, 2016. Under the supervision of the branch, he explored the general functions of the bank, particularly general banking. The certificate confirms he maintained enthusiasm and diligence throughout the internship, and the experience will benefit his future professional career.
The PSRE 2400 document:
1) Establishes the objective of a review engagement is to enable the auditor to state whether anything has come to their attention that causes them to believe the financial statements are not prepared in accordance with accounting principles (provide negative assurance).
2) Details the general principles, scope, level of assurance (moderate), terms of engagement including planning, work performed by others, documentation, procedures, conclusions and reporting for a review engagement.
3) Provides appendices including an example engagement letter, detailed review
This document summarizes the International Standard on Auditing (ISA) 720 (Revised) regarding an auditor's responsibilities relating to other information in an entity's annual report.
The standard defines key terms such as annual report and other information. It requires the auditor to obtain the final version of the annual report, read and consider the other information to identify material inconsistencies with the financial statements or the auditor's knowledge.
If a material misstatement is identified, the auditor must discuss it with management and take appropriate actions such as requesting correction, considering implications for the audit report, or withdrawing from the engagement. The standard provides requirements for reporting on other information in the auditor's report.
Ranska. Karkea käännös. Small entity audit standard NP 2010 Lasse Åkerblad
This document outlines the standards for auditing financial statements of small entities in France. It aims to provide guidance tailored to the specific characteristics of small entities, while maintaining the same audit objectives and required diligences as larger audits.
The standards cover engagement letters, quality control, fraud consideration, laws and regulations, communication with governance, internal controls, risk assessment, materiality, evidence, estimates, related parties, subsequent events, going concern, representations, and the auditor's report. Procedures are to be adapted based on the auditor's judgment of the small entity's context, focusing on limiting constraints while achieving audit goals.
Isa 700 Forming An Opinion And Reporting On Financial Statements En Inglesguest4a971d
- The document is an international standard on auditing that deals with an auditor's responsibility to form an opinion on financial statements and to express that opinion clearly in a written audit report.
- The objectives of the auditor are to form an opinion on whether the financial statements are prepared in accordance with the applicable financial reporting framework, and to express this opinion clearly in the audit report.
- The auditor must conclude whether sufficient appropriate audit evidence was obtained to form an opinion, whether any uncorrected misstatements are material, and whether various qualitative aspects of the financial statements are in accordance with the financial reporting framework.
- The document outlines International Standard on Assurance Engagements 3400 which establishes standards and guidance for engagements to examine and report on prospective financial information.
- It discusses key aspects of such engagements including the auditor's assurance responsibilities, acceptance of the engagement, examination procedures, presentation and disclosure requirements, and the content of reports on examinations of prospective financial information.
- The standard is intended to apply to examinations of best-estimate and hypothetical assumptions in prospective financial information but does not apply to general or narrative prospective financial information.
Introduction To Financial Statements And AuditMobasher Ali
The document provides an introduction to financial statements and auditing. It discusses the purpose of financial statements which is to provide useful information to users for decision making. A complete set of financial statements includes a balance sheet, income statement, statement of changes in equity, cash flow statement, and notes. The document also outlines the regulatory requirements for auditing financial statements in Pakistan for various types of entities. The objective of an audit is to express an opinion on whether the financial statements present fairly in accordance with accounting standards.
This document discusses several topics related to auditing:
1) Matters that could indicate non-compliance with laws and regulations by management, such as unusual payments, transactions with tax havens, and improperly recorded transactions.
2) The importance of disclosing accounting policies used and any changes to those policies.
3) That guidance notes are recommendatory for auditors but some are considered mandatory.
4) That inquiry, seeking information from knowledgeable individuals, is an important audit procedure used to obtain evidence.
Rodel S. Navarro; Business and Management Consultant and Director; RODEL SY NAVARRO BUSINESS CONSULTANCY SERVICES (RSNBCS); Tel / Mobile: +63-0917-7333563; Email: rsnbcs@gmail.com http://www.slideshare.net/RSNBCS; (About Business Laws compilation): http://www.slideshare.net/BUSINESSLAWSPH Email: businesslawsph@gmail.com; https://www.slideshare.net/FREEPDFBOOKSPH; freepdfbooksph@gmail.com; www.slideshare.net/IFRS_IAS_COMPILED; ifrs.ias.compiled@gmail.com; https://www.slideshare.net/PH_STANDARDSONAUDITING_COMPILED; psauditing.compiled@gmail.com
This document outlines Vietnamese Accounting Standard 21 regarding the presentation of financial statements. It discusses the objectives, requirements, and principles for preparing and presenting financial statements. The standard applies to both individual enterprise statements and consolidated group statements. It specifies that a complete set of financial statements includes a balance sheet, income statement, cash flow statement, and notes. Financial statements should be prepared on an accrual basis and provide a true and fair view of an enterprise's financial position, performance and cash flows.
C:\fakepath\isa 810 engagements to report on summary financial statements en ...guest4a971d
The document outlines International Standards on Auditing for engagements to report on summary financial statements. It provides requirements for auditors to:
- Accept the engagement only if they have audited the underlying financial statements
- Determine if the criteria for preparing the summary statements are acceptable
- Obtain management agreement to make the audited statements available and include the auditor's report
- Compare the summary statements to the audited statements to evaluate if they are consistent
- Evaluate if the summary statements properly disclose their nature and provide necessary information without being misleading.
This document summarizes the auditor's responsibilities regarding opening balances when conducting an initial audit engagement. The auditor must (1) read the most recent financial statements and predecessor auditor's report, (2) obtain sufficient evidence that opening balances do not contain misstatements that materially affect the current period, and (3) determine if appropriate accounting policies were consistently applied or any changes properly accounted for. The auditor evaluates whether prior period closing balances were correctly brought forward, prior period items properly disclosed, and opening balances reflect appropriate policies.
The document provides an overview of audit reports, including:
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- The report must state the scope and limitations of the audit and separate facts from opinions.
- The nature of the audit examination, management responsibilities, and standards of auditing like SA 700 all impact the structure and wording of the audit report.
This document discusses statutory requirements and corporate governance frameworks. It defines key terms like statutes, statutory requirements, and regulatory compliance. The document outlines several statutory requirements companies must adhere to, such as maintaining financial records, having financial reports audited, preparing annual reports and directors' reports, and sending financial information to stakeholders. It explains that corporate governance frameworks establish rules and practices for company accountability, fairness, and transparency. The frameworks aim to harmonize financial reporting globally to provide useful economic information to users.
This document discusses SLAuS 210 which deals with an auditor's responsibilities in agreeing the terms of an audit engagement with management. It covers establishing preconditions for an audit, the objective to accept an audit only when terms are agreed, and confirming common understanding of the engagement terms. It also provides guidance on the contents of an audit engagement letter, factors to consider regarding the acceptability of the financial reporting framework, management's responsibilities for internal controls and financial statement preparation, and addressing changes to engagement terms.
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SRS 4410 Enagement to complete financial information
1. SRS 4410
ENGAGEMENTS TO
COMPILE FINANCIAL INFORMATION
(Effective for all compilation
engagements beginning on or after April 1, 2004)
Contents
Paragraph(s)
Introduction.......................................................................................1-2
Objective of a Compilation Engagement........................................3-4
General Principles of a Compilation Engagement.........................5-6
Responsibility of Management........................................................7-9
Defining the terms of the Engagement.......................................10-11
Planning..............................................................................................12
Documentation...................................................................................13
Procedures....................................................................................14-18
Special Considerations................................................................19-24
Reporting on a Compilation Engagement..................................25-26
Effective Date.....................................................................................27
Appendices
Standard on Related Services (SRS) 4410∗
, “Engagements to Compile Financial
Information” should be read in the context of the “Preface to the Standards
on Quality Control, Auditing, Review, Other Assurance and Related
Services”1
, which sets out the authority of the Engagement Standards.
Issued in April, 2004. With the issuance of this Standard on Related Services, the “Guidance
Note on Members’ Duties regarding Engagements to Compile Financial Statements”, issued by the
Institute of Chartered Accountants of India, issued in February 2002, shall stand withdrawn.
1
Published in the July, 2007 issue of the Journal.
2. Handbook of Auditing Pronouncements-I.A
Introduction
1. The purpose of this Standard on Related Services (SRS) is to establish
standards on professional responsibilities of an accountant1
when an
engagement to compile financial statements or other financial information is
undertaken and the form and content of the report to be issued in connection
with such a compilation so that the association of the name of the accountant
with such financial statements or financial information is not misconstrued by a
user of those statements or information as having been audited by him.
2. This SRS is directed towards the compilation of financial information.
However, it should be applied to the extent practicable, to engagements to
compile non-financial information, provided the accountant has adequate
knowledge of the subject matter in question. Engagements to provide limited
assistance to a client in the preparation of financial statements (for example,
selection of an appropriate accounting policy), do not constitute an engagement
to compile financial statements. This SRS should be read in conjunction with the
“Framework of Statements on Standard Auditing Practices and Guidance Notes
on Related Services2
”.
Objective of a Compilation Engagement
3. The objective of a compilation engagement is for an accountant to use
accounting expertise, as opposed to auditing expertise, to collect, classify
and summarise financial information. This ordinarily entails reducing detailed
data to a manageable and understandable form without the requirement to test
the assertions underlying that information. The procedures employed are not
designed and do not enable the accountant to express any assurance on the
financial information. However, users of the compiled financial information derive
some benefit as a result of the accountant’s involvement because the service
has been performed with professional competence and due care.
4. A compilation engagement would ordinarily include the preparation of
financial statements (which may or may not be a complete set of financial
statements) but may also include the collection, classification and summarisation
of other financial information, for example, preparation of quarterly financial
results, restatement of financial statements in accordance with a financial
1
For the purpose of this Standard on Related Services and to distinguish between an audit and a
compilation engagement, the term ‘accountant’ (rather than ‘auditor’) has been used throughout to
refer to a member of the Institute in practice.
2
The Framework issued in 2001 has been withdrawn pursuant to the issuance of the “Framework
for Assurance Engagements”, which is applicable from April 1, 2008. The text of the Revised
Framework is reproduced elsewhere in this Handbook.
SRS 4410 2
3. Engagements to Compile Financial Information
reporting framework other than in accordance with which the financial statements
to be restated are already prepared and presented.
General Principles of a Compilation Engagement
5. The accountant should comply with the “Code of Ethics” issued by the
Institute of Chartered Accountants of India. The ethical principles governing
the accountant’s professional responsibilities for this type of engagement are:
(a) Integrity;
(b) Objectivity;
(c) Professional competence and due care;
(d) Confidentiality;
(e) Professional conduct; and
(f) Technical standards.
Independence is not a requirement for a compilation engagement. However,
where the accountant is not independent, a statement to that effect should
be made in the accountant’s report.
6. In all circumstances when an accountant’s name is associated with
financial information compiled by him, the accountant should issue a
report.
Responsibility of Management
7. The management is responsible for taking reasonable steps to prevent and
detect errors, fraud or other irregularities. This includes:
a) Ensuring that the financial information generated in the entity is correct,
complete and reliable;
b) Maintaining adequate accounting and other records and internal controls
and selecting and applying appropriate accounting policies;
c) Establishing controls designed to safeguard the assets of the entity and also
to deter fraudulent or other dishonest conduct and to detect any fraud that
occurs;
d) Establishing controls to provide reasonable assurance that the entity
complies with laws and regulations applicable to its activities, or for detecting
any non-compliance with laws or regulations that occurs.
8. A compilation engagement cannot be regarded as providing assurance on
the adequacy of the client’s internal control systems or on the actual incidence of
SRS 44103
4. Handbook of Auditing Pronouncements-I.A
fraud or non-compliance with laws and regulations. A compilation engagement
carried out by the accountant does not relieve the management of these
responsibilities.
9. The management is also responsible for preparation and presentation of
financial statements or other financial information in accordance with the
applicable laws and regulations, if any. The accountant should, accordingly,
obtain an acknowledgement from the management of its responsibility for
the appropriate preparation and presentation of the financial statements or
other information and of its approval of such information to be compiled.
The accountant should also obtain an acknowledgement from management
of its responsibility for the accuracy and completeness of the underlying
accounting data and the complete disclosure of all material and relevant
information to the accountant.
Defining the Terms of the Engagement
10. An engagement letter will be of assistance in planning the compilation work.
The scope of a compilation engagement would, normally, be defined by the
instructions of the client, though in certain cases, for example, in case of
compilation of financial statements of a company, the form and content of such
financial statements might be laid down under a statute. The accountant
should, therefore, ensure that there is a clear understanding between the
client and the accountant regarding the terms of the engagement by means
of an engagement letter or such other suitable form of contract. Thus, it is
in the interest of both the accountant and the entity that the accountant
sends an engagement letter documenting the key terms of the
appointment. An engagement letter confirms the accountant’s acceptance
of the engagement and helps avoid misunderstanding regarding matters
such as the objective and scope of the engagement and the extent of the
auditor’s responsibilities.
11. The engagement letter would include matters such as the following:
(a) Nature of the engagement including the fact that neither an audit nor a
review will be carried out and that accordingly no assurance will be
expressed.
(b) Fact that the engagement cannot be relied upon to disclose fraud or
defalcations that may exist but that the accountant will bring to the attention
of the management any such matter which might come to his attention
during the course of his engagement.
(c) Nature of the information to be supplied by the client.
SRS 4410 4
5. Engagements to Compile Financial Information
(d) Fact that management is responsible for:
♦ the accuracy and completeness of the information supplied to the
accountant, including maintenance of adequate accounting records
and internal controls and selection and application of appropriate
accounting policies.
♦ preparation and presentation of the financial statements of the entity,
in accordance with the applicable laws and regulations, if any.
♦ safeguarding the assets of the entity and also establishing appropriate
controls designed to prevent and detect fraud and other irregularities.
♦ ensuring that the activities of the entity are carried in accordance with
applicable laws and regulations and that it institutes appropriate
controls to prevent and detect any non-compliance.
♦ ensuring complete disclosure of all material and relevant information
to the accountant.
(e) Intended use and distribution of the information, once compiled.
(f) Basis of accounting on which financial information is to be compiled and the
fact that the basis, and any known departures therefrom, if any will be
disclosed.
(g) The fact that the management is responsible to the users for the
information to be compiled by the accountant.
(h) Unrestricted access to whatever records, documents and other information
is requested in connection with the compilation engagement.
(i) Basis on which fees would be computed and any billing arrangements.
(j) Request for the client to confirm the terms of engagement by
acknowledging the receipt of the engagement letter.
An example of an engagement letter for a compilation engagement appears in
Appendix I.
Planning
12. The accountant should plan the work so that an effective engagement
will be performed.
SRS 44105
6. Handbook of Auditing Pronouncements-I.A
Documentation
13. The accountant should document matters, which are important in
providing evidence that the engagement was carried out in accordance
with this Standard on Related Services and the terms of the engagement.
Procedures
14. The accountant should obtain a general knowledge of the business
and operations of the entity and should be familiar with the accounting
principles and practices of the industry in which the entity operates and
with the form and content of the financial statements/ other financial
information that is appropriate in the circumstances.
15. To compile financial information, the accountant requires a general
understanding of the nature of the entity’s business transactions, the form of its
accounting records and the accounting basis on which the financial information is
to be presented. The accountant ordinarily obtains knowledge of these matters
through experience with the entity or inquiry of the entity’s personnel.
16. Other than as noted in this Standard on Related Services, the accountant is
not, ordinarily, required to:
(a) make any inquiries of management to assess the reliability and
completeness of the information provided;
(b) assess internal controls;
(c) verify any matters; or
(d) verify any explanations.
In a compilation engagement, an accountant would normally have to rely on the
management for most of the information needed to compile the financial
statements or other financial information, including accounting estimates as well
as the fact that the information given to the accountant is complete and reliable.
The accountant should request management representation letter covering
significant information or explanations given orally on which he considers
representations are required.
17. If the accountant becomes aware that the information supplied by
management is incorrect, incomplete, or otherwise unsatisfactory, the
accountant should consider performing the procedures listed in Paragraph
16 and request management to provide additional information. If
management refuses to provide additional information, the accountant
should withdraw from the engagement, informing the entity of the reasons
for the withdrawal.
SRS 4410 6
7. Engagements to Compile Financial Information
18. The accountant should read the compiled information and consider
whether it appears to be appropriate in form and free from obvious material
misstatements. In this sense, material misstatements include:
(a) mistakes in the application of the identified financial reporting framework.
(b) non-disclosure of the financial reporting framework and any known
departures therefrom.
(c) non-disclosure of any other significant matters of which the accountant has
become aware.
The identified financial reporting framework and any known departures
therefrom should be disclosed within the financial information, though
their effects need not be quantified.
Special Considerations
Clients Having an Identified Financial Reporting Framework
19. As far as practicable, in case of compilation of financial statements
prepared within an identified financial reporting framework1
, the
accountant should ensure that the financial statements or other financial
information compiled comply with the requirements of the identified
financial reporting framework. In case of any material departures from the
requirements of the identified financial reporting framework, the fact
should be stated in the Notes to the Accounts or other compiled financial
information as well as in the accountant’s report on the compilation.
Clients Having No Identified Financial Reporting Framework
20. In case of clients for whom compliance with an identified financial
reporting framework is not required or the Accounting Standards issued by the
Institute of Chartered Accountants of India are not mandatory, the client may
1
Paragraph 3 of the Framework for Statements on Standard Auditing Practices and Guidance
Notes on Related Services states as follows:
“Financial statements are ordinarily prepared and presented annually and are directed
toward the common information needs of a wide range of users. Many of those users rely on
the financial statements as their major source of information because they do not have the
power to obtain additional information to meet their specific information needs. Thus,
financial statements need to be prepared in accordance with one, or a combination of :
(a) relevant statutory requirements, e.g., the Companies Act, 1956, for companies;
(b) accounting standards issued by the Institute of Chartered Accountants of India; and
(c) other recognised accounting principles and practices, e.g., those recommended in the
Guidance Notes issued by the Institute of Chartered Accountants of India.”
(The readers may note that the Framework issued in 2001 has been withdrawn pursuant to the
issuance of the “Framework for Assurance Engagements”, which is applicable from April 1, 2008.
The text of the Revised Framework is reproduced elsewhere in this Handbook.)
SRS 44107
8. Handbook of Auditing Pronouncements-I.A
specify that the accounts should be compiled on, for example, based on the
requirements of the Income Tax Act, 1961. However, since, accounts are
normally assumed to be compliant with the generally accepted accounting
practices, including the Accounting Standards issued by the Institute of
Chartered Accountants of India, the different basis of compilation should
be set out in the Notes to the Accounts or other compiled financial
information as well as the report issued by the accountant on compilation.
Non-Compliance with the Accounting Standards
21. In the case of a company, the financial statements compiled must
comply with the relevant provisions of the Companies Act, 1956, including the
Accounting Standards and, accordingly, give a true and fair view. However,
without carrying out the procedures necessary for an audit, the accountant
cannot form any opinion on whether the accounts give a true and fair view, even
though he has compiled these financial statements. The compilation is based on
the information supplied to the accountant by the client and does not include any
verification thereof. However, if the accountant becomes aware of material
non-compliance with any applicable Accounting Standard(s), the same
should be brought to the attention of the management and, if the same is
not rectified by the management, it should be included in the Notes to the
Accounts and the compilation report of the accountant.
Accounting Estimates Made by Clients
22. Often in compilation engagements, it is necessary for certain items in the
accounts, for example, work in progress, to be based on estimates by the client.
Such estimated items should be so described where material. If, based on the
information provided to the accountant, it appears that certain estimates
are unreasonable, the accountant should draw these to the attention of the
management for reconsideration.
23. If the accountant becomes aware of material misstatements, the
accountant should persuade the management to carry out necessary
amendments in the financial statements or other compiled financial
information. If such amendments are not made and the financial
statements are still considered to be misleading, the accountant should
withdraw from the engagement.
24. The financial statements or other financial information compiled
should be approved by the client before the compilation report is signed by
the accountant. The client should be asked to sign a statement on the face
of the accounts retained by the accountant. The accountant should ensure
that the users of the financial statements or other financial information so
SRS 4410 8
9. Engagements to Compile Financial Information
compiled are aware of the extent of his/her involvement with the accounts
so that the users do not derive unwarranted assurance. Accordingly, the
word ‘audit’ should not be used in describing the nature of services
involving compilation of financial statements or other financial information,
nor the fee for these services be described as “auditors’ fee”, or
remuneration in the accounts, correspondence or any other document. The
accountant should also take note that the financial statements or other
financial information so compiled should not be prepared on the letter-
heads or other stationery of the accountant, carrying his (or firm’s) name
and address since it is liable to be misinterpreted.
Reporting on a Compilation Engagement
25. It is essential that the accountant clearly brings out the nature of
association with the financial statements and the nature of the work
performed by him. The report on compilation engagements should,
ordinarily, be in the following lay out:
(a) Title: The title of the report should be “Accountant’s Report on
Compilation of Unaudited Financial Statements” (and not “Auditor’s
Report”);
(b) Addressee: The report should ordinarily be addressed to the
appointing authority;
(c) Identification of the financial information also noting that it is based
on the information provided by the management;
(d) When relevant, a statement that the accountant is not independent of
the entity;
(e) A statement that the management is responsible for:
♦ completeness and accuracy of the underlying data and complete
disclosure of all material and relevant information to the
accountant;
♦ maintaining adequate accounting and other records and internal
controls and selecting and applying appropriate accounting
policies;
♦ preparation and presentation of financial statements or other
financial information in accordance with the applicable laws and
regulations, if any;
SRS 44109
10. Handbook of Auditing Pronouncements-I.A
♦ establishing controls to safeguard the assets of the entity and
preventing and detecting frauds or other irregularities;
♦ establishing controls for ensuring that the activities of the entity
are carried out in accordance with the applicable laws and
regulations and preventing and detecting any non-compliance;
(f) A statement that the engagement was performed in accordance with
this Standard on Related Services ;
(g) A statement that neither an audit nor a review has been carried out
and that accordingly no assurance is expressed on the financial
information;
(h) A paragraph, when considered necessary, drawing attention to the
disclosure of material departures from the identified financial
reporting framework;
(i) Date of the report;
(j) Place of signature; and
(k) Accountant’s signature: The report on compilation of financial information
should be signed by the auditor in his personal name. Where a firm is
appointed for the engagement, the report should be signed in the personal
name of the accountant and in the name of the firm. The partner/proprietor
signing the report on compilation of financial information should also
mention the membership number assigned by the Institute of Chartered
Accountants of India
Appendix II to this Standard contains examples of compilation reports.
26. The financial statements or other financial information compiled by
the accountant should contain a reference such as “Unaudited,” “Compiled
without Audit or Review” and also “Refer to Compilation Report” on each
page of the financial information or on the front of the complete set of
financial statements.
Effective Date
27. This Standard on Related Services is applicable to all compilation
engagements beginning on or after April 1, 2004.
Compatibility with International Standard on Auditing (ISA)**
930
The standards for compilation engagements established in this Standard on
**
Now the International Standard on Related Services (ISRS) 4410.
SRS 4410 10
11. Engagements to Compile Financial Information
Related Services are generally consistent in all material respects with those set
out in the International Standard on Auditing (ISA) 930, “Engagements to
Compile Financial Information”, except for the additional section titled, “Special
Considerations”, as given in paragraphs 19 to 22 of this Standard on Related
Services .
The said section has been added to provide guidance to members in respect of
certain typical issues which might be faced by the members in carrying out
compilation engagements. For example, duties and responsibilities of the
accountant in case of clients having an identified financial reporting framework,
such as the Companies Act, 1956 and any material departures therefrom; clients
having no identified financial reporting framework, say, where the financial
statements are based on the requirements of the Income Tax Act, 1961. The
section also provides guidance in respect of situations where the accountant
becomes aware of a material non-compliance with the applicable Accounting
Standards; as also duties of the accountant relating to accounting estimates
made by the client.
Moreover, the Standard on Related Services , in paragraph 24, unlike the
International Standard on Auditing (ISA) 930, also requires that the financial
statements should be approved by the client before compilation report is signed
by the accountant. The SRS also requires the accountant to ensure that the
users of the compiled financial statements are aware of the extent of his/ her
involvement with the accounts so that the users do not derive any unwarranted
assurance. The SRS, unlike the ISA, also prohibits the accountant from
preparing the financial statements on his letter head or other stationery bearing
his (or firm’s) name or address.
In addition, the SRS, unlike the ISA, does not require the accountant to send a
form of expected report to the client alongwith the engagement letter. Also, the
SRS requires the accountant to mention the place of signature in his report as
compared to the ISA which requires the accountants to give his address.
SRS 441011
12. Handbook of Auditing Pronouncements-I.A
Appendix I
Example of an Engagement Letter for a Compilation Engagement
The following letter is for use as a guide in conjunction with the considerations
outlined in paragraph 11 of this Standard on Related Services . This example is
for the compilation of financial statements of a company and will need to be
varied according to individual requirements and circumstances.
(Date)
To the Board of Directors (or other appropriate representatives of senior
management):
You have, vide your letter dated ________ requested that we compile the
balance sheet of __________(name of the company) as at
______________(date) and the related profit and loss account and the (cash
flow statement)1
for the year ended on that date. We are pleased to confirm our
acceptance and understanding of the engagement by means of this letter. As no
audit or review engagement procedures would be carried out, no opinion on the
financial statements will be expressed. Further, our engagement cannot be
relied upon to disclose whether frauds or defalcations, or illegal acts exist.
However, we will inform you of any such matters which might come to our
attention in the course of the engagement.
As management, you are responsible for:
(a) the accuracy and completeness of the information supplied to us, including
maintenance of adequate accounting records and internal controls and
selection and application of appropriate accounting policies.
(b) preparation and presentation of the financial statements of the entity, in
accordance with the applicable laws and regulations, if any.
(c) safeguarding the assets of the entity and also establishing appropriate
controls designed to prevent and detect fraud and other irregularities.
(d) ensuring that the activities of the entity are carried in accordance with
applicable laws and regulations and that it institutes appropriate controls to
prevent and detect any non-compliance.
You will confirm that events and transactions are recorded in accordance with
the applicable Accounting Standard(s), issued by the Institute of Chartered
Accountants of India and other recognised accounting principles and practices
and inform us of any departures therefrom.
1
Only in cases where relevant.
SRS 4410 12
13. Engagements to Compile Financial Information
As part of our normal procedures, we may request you to provide written
confirmations of any information or explanations given to us orally during the
course of our work.
We understand that the intended use and distribution of the information we have
compiled is _________________ (specify).
We look forward to full cooperation with your staff and we trust that they will
make available to us whatever records, documentation and other information
requested in connection with our engagement.
Our fees will be billed as the work progresses.
Please sign and return the attached copy of this letter to indicate that it is in
accordance with your understanding of the arrangements for our compilation of
your financial statements.
XYZ & Co.
Chartered Accountants
……………………………
Signature
(Name of the Member)
Designation2
Address:
Date:
For ABC & Co.
Acknowledged on behalf of ______________(name of the company)
----------------
Signature
Name and Designation
Date
Address
2
Partner or proprietor, as the case may be.
SRS 441013
14. Handbook of Auditing Pronouncements-I.A
Appendix II
Examples of a Report of an Engagement to Compile Financial Statements
Illustration 1: Report on Compilation of Financial Statements
ACCOUNTANT’S REPORT ON COMPILATION OF UNAUDITED FINANCIAL
STATEMENTS
To…….
On the basis of the accounting records and other information and explanations
provided to us by the management, we have compiled, the unaudited balance
sheet of ………………..(name of the entity) as at March 31, XXXX and the
related profit and loss account and the cash flow statement1
for the period then
ended.
The management of the _________ (name of the entity) is responsible for:
(a) Completeness and accuracy of the underlying data and complete disclosure
of all material and relevant information to the accountant.
(b) Maintaining adequate accounting and other records and internal controls
and selecting and applying appropriate accounting policies;
(c) Preparation and presentation of financial statements in accordance with the
applicable laws and regulations, if any.
(d) Establishing controls to safeguard the assets of the entity and preventing
and detecting frauds or other irregularities.
(e) Establishing controls for ensuring that the activities of the entity are carried
out in accordance with the applicable laws and regulations and preventing
and detecting any non compliance.
The compilation engagement was carried out by us in accordance with the
Standard on Related Services (SRS) 4410 , “Engagements to Compile Financial
Information”, issued by the Institute of Chartered Accountants of India.
The balance sheet and the profit and loss account are in agreement with the
books of account. We have not audited or reviewed these financial statements
and accordingly express no opinion thereon.
For ABC & Co.
Chartered Accountants
…………………………...
Signature
1
Where applicable.
SRS 4410 14
15. Engagements to Compile Financial Information
(Name of the accountant and membership number)
Designation2
Date:
Place:
Illustration 2: Compiled Financial Statements Where Such Financial
Statements do not Comply with the Generally Accepted Accounting
Practices in India.
ACCOUNTANT’S REPORT ON
COMPILATION OF UNAUDITED FINANCIAL STATEMENTS
To………
On the basis of the accounting records and other information and explanations
provided to us by the management, we have compiled the unaudited balance
sheet of __________ (name of the entity) as of March 31, XXXX and the related
profit and loss account and the cash flow statement3
for the period then ended.
The management of the _________ (name of the entity) is responsible for:
(a) Completeness and accuracy of the underlying data and complete disclosure
of all material and relevant information to the accountant.
(b) Maintaining adequate accounting and other records and internal controls
and selecting and applying appropriate accounting policies;
(c) Preparation and presentation of financial statements in accordance with the
applicable laws and regulations, if any.
(d) Establishing controls to safeguard the assets of the entity and preventing
and detecting frauds or other irregularities.
(e) Establishing controls for ensuring that the activities of the entity are carried
out in accordance with the applicable laws and regulations and preventing
and detecting any non-compliance.
The compilation engagement was carried out by us in accordance with the
Standard on Related Services (SRS) 4410 , “Engagements to Compile Financial
Information”, issued by the Institute of Chartered Accountants of India.
2
Partner or Proprietor, as the case may be.
3
Where applicable.
SRS 441015
16. Handbook of Auditing Pronouncements-I.A
Since the financial statements have been compiled for the Income Tax
Department and have been drawn up on cash basis of accounting to
reflect the necessary adjustments for computation of the income by
the Department, these financial statements, accordingly, do not
comply with the generally accepted accounting principles in India.
The balance sheet and the profit and loss account are in agreement with the
books of account. We have not audited or reviewed these financial statements
and accordingly express no opinion thereon.
Date:
Place:
For ABC & Co.
Chartered Accountants
…………………………...
Signature
(Name of the accountant and membership number)
Designation4
4
Partner or proprietor.
SRS 4410 16