Document background
The Compilation Engagement Letter serves as a crucial document in Indian professional accounting practice, establishing the professional relationship between an accounting firm and its client for compilation services. This document is required when a client needs assistance in preparing financial information without providing assurance services. The Compilation Engagement Letter explicitly defines the nature of the engagement, clarifying that it differs from an audit or review engagement, and follows the guidelines set forth in SRS 4410 issued by ICAI. It's particularly relevant for small and medium-sized enterprises in India seeking professional assistance in preparing financial information while ensuring compliance with applicable accounting standards and regulatory requirements. The letter includes specific terms, scope, limitations, and responsibilities tailored to Indian business practices and legal framework.
