What are Compiled Financial Statements?
A compilation is a presentation of financial statements, and other information, that is the representation of the management or owners of a Company. After becoming familiar with the client’s industry, and having an understanding of how the client’s transactions are recorded, the CPA compiles the information supplied by the client into proper financial statement form. The CPA reads the financial statements to determine if they appear to be reasonable. If any obvious material errors, omissions or misstatements are noted, the CPA will discuss these items with the Company’s management for clarification or adjustment to the statements. The Company’s management is responsible for the accuracy and completeness of the financial statements. The CPA issues a report on the financial statement but, because they were not audited or reviewed, no opinion or assurance is expressed on them as to whether material or significant changes are necessary for them to be in conformity with GAAP. Compilation st
