Financial statement compilations
Through compiling the financial information, a CPA can prepare monthly, quarterly or annual financial statements, depending on the requirements of the client. However, the CPA cannot offer assurance as to whether material or significant changes are necessary for the statements to be in conformity with commonly accepted accounting fundamentals. During the compilation, data is arranged to be in regular financial statement form. No probing is handled beneath the surface unless the CPA is aware that the data provided has errors or incompletions.
In a compilation commitment, the objective is to help 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.
A compilation involves;
- Gaining a general grasp of your business, accounting principles and financial reporting system used.
- Presenting financial information in the accepted format of proper financial statements.