Table of Contents
Can a non CPA issue compilation report in Canada?
A Non-CPA can also perform a CSRS 4200, there is no such restriction! However, there is a real difficulty imposed on such professionals. A compilation engagement report, now, refers to the responsibilities of both management and the practitioner.
What is a compilation letter?
A compilation refers to a company’s financial statements that have been prepared or compiled by an outside accountant. A compilation is usually part of an accounting firm’s write-up service.
How do you write a compilation letter?
The compilation report should:
- Include a statement that management (owners) is (are) responsible for the financial statements.
- Identify the financial statements.
- Identify the entity.
- Specify the date or period covered.
- Include a statement that the compilation was performed in accordance with SSARS.
What is required in a compilation?
Unlike an audit or review report, a compilation report comprises a single paragraph, without paragraph titles. It should identify the entity (client), compiled financial statements, and the period covered.
Is a preparation engagement an attest service?
A preparation engagement is a non-attest service provided by Certified Public Accountants in which they are engaged to prepare financial statements or prospective financial information. As it is a non-attest service, the accountant does not have to be independent of the client entity.
Who can provide compilation services?
accountant
A compilation is the one of the lowest level financial statement services an accountant can provide. A compilation consists essentially of presenting information obtained from a client in financial statement format. There is no assurance being provided by the accountant.
Are You performing compilation engagements in accordance with AICPA standards?
We have performed compilation engagements in accordance with the Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.
Is a compilation report always required in a compilation engagement?
In a compilation engagement, a compilation report is always required. A compilation engagement is an attest, nonassurance service.
Should a reference to the compilation report be included in financial statements?
So, financial statements can be for a fiscal year, quarterly, or monthly, for example. Should a reference to the compilation report be included at the bottom of each financial statement page (including supplementary information)? While not required, it is acceptable to add a reference such as: Why add such references?
Is there an exemption from the compilation Standards?
There is no exemption for entities that were subject to the compilation standards. Basically, the compilations (since they are a no assurance services) would add little value to the audit of the consolidated entity.