Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why are CPAs no longer issuing a COMPILATION REPORT with financial statements?

April 26, 2017compilation CPA financial statements issuing longer report

0

Posted

Why are CPAs no longer issuing a COMPILATION REPORT with financial statements?

1 Answer

0

Posted

A compilation is not required, nor are disclosures required, when financial statements are prepared for management use only and the financial statements are not intended for use by third parties which includes staff of the entity.. Additionally, management must have full knowledge of the bases of preparation of financial statements (cash basis, income tax basis, accrual basis) and full understanding of the financial statements. The users of the financial statements are defined in the engagement letter signed by the client.