What is a compilation? A compilation is
presenting in the form of financial statements information that is
the representation of management (owners) without any undertaking to
express any assurance on the statements.
An example of a compilation report would be
taking your internally generated financial information and
organizing it in financial statement form. When doing so, no
procedures or testing is performed and no assurances are provided on
the financial statements.
You may be considering business expansion or
acquiring a new business. Such action usually requires the
preparation of a forecast or projection. A compilation report
would be issued with the forecast or projection since the financial
information would be based on the representations of management.
If we are contracted to provide bookkeeping
services for your business, the accounting standards require CPAs to
issue a compilation report at least annually.