Engagement Essentials

Chapter 5REPORTING ON COMPILATION ENGAGEMENTS

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

•    Identify the features of a standard compilation report.

•    Recognize when common modifications should be applied to the standard compilation report.

•    Recognize the report modifications required for special purpose framework (SPF) financial statements.

RESOURCE

Appendix B—Sample Compilation Reports

Standard Compilation Reports

FORM AND CONTENT

The standard compilation report as shown in appendix B-1 is addressed to the appropriate level of

management or the board of directors and contains one paragraph. The accountant's compilation report

should be signed by the accounting firm or accountant as appropriate.

The accountant's compilation report should be in writing and include

•    a statement that management (owners) is (are) responsible for the financial statements.

•    the identification of the financial statements that have been subjected to the compilation engagement.

•    the identification of the entity whose financials statements have been subjected to the compilation engagement.

•    a statement that the accountant performed the compilation engagement in accordance with Statements on Standards for Accounting and Review Services (SSARSs) promulgated by the Accounting and Review Services Committee (ARSC) of the AICPA.

•    a statement that the accountant did not audit or review the financial statements nor was the accountant ...