Compilations

A compilation is simply a CPA's compiling of an organization's financial statements based on management's representations. With the compiled financial statements, the CPA issues a report providing no assurance about the financial statements. The data is merely arranged by the CPA into a standard financial statement format.

To compile the financial statements, however, the CPA must obtain an understanding of the adequacy of the organization's accounting system from which the financial statement data comes and whether the compiled financial statements are appropriate in form and free from obvious material errors.

Historical and forecasted company financial statements, as well as personal financial statements, can be audited or compiled.