Compilation of Financial Statements

To assist management in presenting financial information in the form of financial statements

No assurance provided

Requirements:

• Knowledge of industry accounting principles and practices
• Understanding of Client's business
• Reading of financial statements for obvious material errors 
• fraud, illegal acts, going concern, subsequent events

Compiled statements that omit GAAP disclosures - include in report that:

• FS are prepared in conformity with comprehensive basis of accounting other than GAAP
• FS are otherwise in conformity with GAAP
• Reason for omission was not to deceive user
• Warns user of missing disclosures

Other notes:

• Accountant DOES NOT need to obtain an understanding of internal control (review and comp)
• MRL is NOT required
• If Client fails to provide a rep letter for a review of a balance sheet, accountant may issue a compilation report with Client's consent