The practice often conducts training sessions for the accounting and finance departments of its clients to enhance its independence when compiling financial statements. One of its clients, Robotics (Pty) Ltd, concludes complex business transactions that require significant technical knowledge. To render quality service to this client, the senior staff responsible for the financial statement engagement often assist the finance department with recording these complex transactions and developing the accounting policies to ensure the financial statements comply with the accounting standards adopted.

Required:

(a) Discuss whether the independent compiler can assist management in recording complex transactions as well as selecting accounting policies when finalizing the financial statements. 

(b) Advise management of the practice on what procedures can be implemented to minimize the risk of breaching the independence when performing the compilation as well as ensuring that quality is maintained throughout the engagement.

Answer rating: 100% (QA)

A answer Accountancy Standards of the Highest Quality The creation of a highquality worldwide financial reporting framework requires highquality accounting standards Different accounting traditions ha... View the full answer