Compilation Engagements

In a compilation engagement, the objective is to assist management in presenting financial information in the form of financial statements without undertaking to provide any assurance that there are no material modifications that should be made to the financial statements so they will conform to the acceptable financial reporting framework. Because of the even more limited scope of compilation procedures, the report of CPAs will not express an opinion or provide any assurance regarding the financial statements.
A compilation involves (1) gaining a general understanding of your business, accounting principles used and financial reporting system and (2) presenting financial information in the accepted format of proper financial statements. A CPA expresses no assurance about the accuracy of the financial statements presented. The report attached to the financial statement emphasizes that the service is a compilation.
A third-party reader will often dictate the type of engagement you should choose especially if there is borrowing involved. And even when the minimum requirement might be enough, there are several benefits to looking for a higher level of assurance.
If you need assistance with any of the above engagements for your business or are still unsure which engagement you need, please contact us with any questions you may have.