The purpose of a Compilation engagement is to compile unaudited financial information into financial statements and financial data that reflect management’s representation of the organization’s historical financial condition and events (or other financial matters) based on information supplied by management.
Both the Compilation and Review engagements are substantially less in scope than an audit engagement performed in accordance with generally accepted audit standards. Accordingly, the Compilation report gives no assurances about the accompanying compiled financial information.
The Compilation engagement is well suited for those situations where financial statements are prepared for the exclusive internal use of management, or where a third-party user is satisfied with receiving the organization’s financial information without the added level of assurance that an audit or Review engagement might provide.
Please call us to discuss how a Compilation engagement may benefit you.