Serge Huot, CA1330 Inge CrescentNavan, ONK4B 1M7

January 31st, 2011

International Auditing and Assurance Standards Board (IAASB)

London, UK

(Through Web Site at: www.ifac.org)

Subject: Compilation Engagement - Proposed ISRS4410

General Comment

A compilation report by a practitioner over a set of financial statements must not provide (at least it is

not supposed to) any assurance over a set of compiled financial statements. This is a basic tenet of a

compilation engagement that should not be compromised whatsoever. It is my view that the proposed

revisions to the IRFS4410 will do so with, among other elements, its proposed requirements calling for

much more information being presented in the practitioner's compilation report.

With this proposal, it seems to me that that IAASB is trying to enhance the value of compilation

engagements through a) more disclosure in the practitioner's report and in the compiled financial

statements and b) with the establishment of quality controls over such engagements. This is going the

wrong way.

Specific Comments

While it is certainly useful to know the intended use of the compiled financial statements, I do not agree

that it has to be a requirement. I believe the indented use and rationale for such engagements is

implicit for the vast majority of them. Indeed, I believe that the vast majority of clients requiring such

engagements (compilation offinancial statements) are owners of small entities, either incorporated or

not, with limited accounting knowledge and resources. In most cases, these clients just want to know,

at the least cost, the financial results for their last fiscal year and to be able to use that information for

preparing their various tax returns to be filed with their governmental authorities.

As stated earlier, there should be no assurance whatsoever over a set of compiled financial statements.

I disagree with introducing the notion of special purpose; there should only be general purpose

compiled financial statements. Introducing a notion of a compilation for a <special purpose> would

lead, in my view, the reader to implicitly assume that there is a certain degree of assurance over the

compiled information; especially if such purpose is stated or referred to in the practitioner's compilation

report. Neither should that report identify the reporting framework used; however, that information

may be disclosed in a note to the financial statements. On the other hand, I agree with the proposal

that the financial reporting framework should be identified in the engagement letter.

Telephone / phone: 613-835-2964 Telecopie / fax: 613-835-3016

The proposal calls for the practitioner to obtain management's acknowledgment of its responsibilities as

a pre-condition before accepting a compilation engagement; it claims that it is an important factor in

mitigating the risk of being associated with information that is materially false or misleading. I disagree

with the conclusion that such an acknowledgment would do so. However, specifying management

responsibilities with regard to providing the necessary information to the practitioner is a good practice.

It is my view that <Quality Control> should be in place for assurance engagements (audit and review);

compilation engagements are not assurance engagements. Therefore, I do not agree that such

engagements be subject to the requirements of International Standards on Quality. I believe that the

use of an appropriate basic checklist is sufficient.

I agree with the proposed documentation requirements. I believe that these requirements are already

met in practice.

Practitioner's Compilation Report. As already alluded before, I do not agree with expanding the

compilation report by providing more information on the practitioner's involvement and on the

reporting framework used as I believe this may lead to a reader to assume a certain degree of assurance

over the compiled financial statements. As stated earlier, there has to be no assurance at all being

provided over compiled financial statements and, as a result, no unnecessary additional information

should be added to the report that may confuse the reader or that he may misinterpret. I support the

idea to identify the addressee which should always be <management>.

Telephone / phone: 613-835-2964 Telecopie / fax: 613-835-3016