1. Scope of application
01. Standard 4410 specifies and guides the responsibilities of practicing accountants, accounting service firms, and practicing auditors, auditing firms (hereinafter referred to as “practitioners”) when providing services to support the management of an entity in preparing and presenting historical financial information without providing any guarantee on such information and preparing reports on the performance of financial information aggregation services (hereinafter referred to as “aggregation services”) in accordance with this Standard.See guidance in paragraphs A1-A2 of Standard 4410.).
02. This Standard applies to services that aggregate historical financial information. Where necessary, this Standard may also apply to services that aggregate information other than historical financial information and services that aggregate non-financial information.Past financial information"The following is understood as "Economic information"(See guidance in paragraphs A3–A4 of this Standard.).
03. When the management of an entity using a service requests assistance from a professional in preparing and presenting financial information, the professional may need to consider whether that service is required to comply with this Standard. Factors indicating that the service should comply with this Standard, including reporting under Standard 4410, include:
(1) Financial information must comply with relevant laws and regulations and must be made public;
(2) Other parties besides the intended users of aggregated financial information tend to associate the name of the professional with that financial information and risk misunderstanding the extent of the professional's involvement with that information, for example:
(i) If the information is used for purposes other than the Board of Directors or the Management Board, or if parties may be provided with or collect the information who are not the intended users of the information;
(ii) If the name of the practitioner is presented together with financial information (see guidance in paragraph A5 of this Standard).
2. Relationship with Quality Control Standard No. 1
04. Accounting service businesses, auditing businesses (Hereinafter referred to as "accounting and auditing firms") is responsible for its own quality control policy and procedure system. Quality Control Standard No. 1 – Quality control of businesses performing audits, financial statement reviews, assurance services and other related services (Hereinafter referred to as "Quality Control Standard No. 1") applies to accounting and auditing firms when performing financial information aggregation services in accordance with this Standard.See the regulations in paragraph 04 of Quality Control Standard No. 1.). The provisions and guidance of this Standard relating to quality control at the level of individual financial information aggregation service contracts are established on the basis that accounting and auditing firms must comply with Quality Control Standard No. 1, other professional requirements or relevant legal and regulatory requirements that are at least equivalent to Quality Control Standard No. 1.See guidance in paragraphs A6–A11 of this Standard.).
3. Comprehensive financial information services
05. The management of the entity using the service may request the professional to assist in the preparation and presentation of the entity's financial information. The value that the performance of the comprehensive service contract under this Standard brings to the user of financial information is the result of the professional's application of professional accounting and financial reporting skills, adherence to professional standards, including relevant professional ethics standards and regulations, and specific information about the nature and scope of the professional's involvement in the consolidated financial information.See guidance in paragraphs A12–A15 of this Standard.).
06. Aggregation services are not assurance services and therefore do not require practitioners to verify the accuracy or completeness of information provided by the entity's management to perform information aggregation, nor do they require the collection of evidence to form the basis for an audit opinion or a review conclusion on the aggregated financial information.
07. The entity's management is responsible for financial information, the basis for its preparation and presentation. This responsibility includes applying the necessary judgment to the preparation and presentation of financial information, including selecting and applying appropriate accounting policies and constructing reasonable accounting estimates where necessary.See guidance in paragraphs A12–A13 of this Standard.).
08. This Standard does not prescribe the responsibilities of the Board of Directors or the unit's management and does not have the force of law and regulations relating to their responsibilities. Comprehensive services as prescribed and guided by this Standard are performed on the basis that the Board of Directors or the unit's management (to the extent appropriate) understands and agrees to their responsibilities as a basis for the practitioner to perform the comprehensive services.See guidance in paragraphs A12–A13 of this Standard.).
09. Financial information that is the subject of aggregating services may be requested to be aggregated for various purposes, including:
(a) Comply with the requirements for preparing and presenting periodic financial reports that are legally and regulatoryly mandated; or
(b) For purposes unrelated to the preparation and presentation of financial statements required by law and relevant regulations, for example:
(1) For the Board of Directors or the unit's management board, established on a basis appropriate to the specific purposes of the Board of Directors or the management board (for example, to prepare financial information for internal use);
(2) Prepare periodic financial reports for third parties under contract or other agreement (e.g., financial reports provided to the funding organization at the request of the donor);
(3) To carry out transactions, such as transactions involving changes in business ownership or changes in financial structure (e.g., mergers or acquisitions).
10. Different financial reporting frameworks may be used for the preparation and presentation of financial information, ranging from the accounting basis for small and medium-sized enterprises to regulatory financial reporting standards. The financial reporting framework adopted by the entity's management in preparing and presenting financial information will depend on the entity's characteristics and the intended users of the financial information.See guidance in paragraphs A16-A18 of Standard 4410.).
4. Basis for application
11. Standard 4410 includes the practitioner's objective in complying with the standard, which provides the basis of the provisions and guidance of this Standard to help practitioners understand the work to be done in general services.
12. This Standard includes a “General Provisions” section, a “Subject Matter” section, and a “Guidance on Application” section, adapted to the specific context to help readers understand this Standard correctly.
13. The requirements of the “Standard Content” section must be applied to ensure that practitioners meet the stated objectives.
14. The “Instructions for Application” section provides further clarification of the regulations and guidance for implementing those regulations. The instructions outline how to apply the regulations appropriately. The instructions may also provide necessary information to help understand the standard's provisions to support its application and compliance.
15. Professionals must comply with the provisions and guidelines of this Standard in the negotiation and execution of contracts for the aggregation of financial information services.
The service user (client) and related entities and individuals must have the necessary understanding of the regulations and guidelines of this Standard in order to coordinate work and manage relationships related to the negotiation and execution of the financial information aggregation service contract.
View full text Standard 4410 (Vietnamese)
View full text Standard 4410 (English)