Compilation - Lowest Level of Assurance

The compilation of financial statements for a client involves the assembly of information that is soley the "representation of management". The report is issued without an auditor's opinion or other assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Knowledge of industry accounting principles and a general understanding of business are needed to assemble the data.

Banks may require C.P.A. compilations as part of a lending covenant.

Which Report Should You Use?

Each type of financial statement report may suit specific circumstances, depending on requirements from your client's bank or other parties, as well as meet budgetary needs.

Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.