There may be circumstances where CSRS 4200 does not apply, but management requests a practitioner’s communication, or when the practitioner decides that a communication is necessary to avoid users’ misunderstanding the nature and limitations of the engagement.
CPA Canada has published an Implementation Tool for CSRS 4200 Compilation Engagements. One of the frequently asked questions in this document is whether a compilation engagement report, or any other form of communication, can be attached to financial information that is excluded from the scope of CSRS 4200.
The only form of communication that can attach to the financial information is a compilation engagement report. In such case, all the requirements of CSRS 4200 apply. No other form of communication, such as disclaimers, can be included or attached to financial information excluded from the scope of CSRS 4200. The reason that the only appropriate form of communication is a compilation engagement report is because such a report appropriately communicates management and the practitioner’s responsibilities and the limitations of the engagement. Different forms of communication, such as disclaimers, may be confusing and misleading to readers, so the standard promotes consistency in reporting on information.