Compilation financial statements can help you manage your business better.
The objective of a compilation engagement is to present financial information without the accountant’s opinion or assurance. The numbers used in a compilation financial statement are provided by management and the accountant compiles the information into a standard financial statement format.
The compilation involves the accountant reaching a general understanding of a business and its accounting and reporting principles, however verification procedures are not required. The CPA will not express an opinion or provide assurance that the financial statements are complete or accurate. Compilation engagements are used where audits or reviews are not required, for example where limited business and tax advice is required.