AR-C 80 Compilation Engagements
Original Pronouncements
| Source | Statement on Standards for Accounting and Review Services (SSARSs) 21 and 23. |
Objectives and Limitations of Preparation Engagements
It is important to note that the requirements in AR-C 60 apply to all SSARS engagements, including compilation engagements. Readers should apply the requirements in the chapter on Section 60 to compilation engagements in addition to the guidance in this chapter.
Section 80 applies when an accountant has been engaged to compile financial statements. Section 80 may also apply to prospective financial information, pro forma information, or other historical or prospective financial information. (AU-C 80.01) When engaged to compile pro forma financial information, the accountant must also comply with the requirements in AU-C 120. When performing a compilation engagement, the accountant does not provide any assurance as to the accuracy or completeness of management's information or gather evidence to express an opinion or a conclusion on the financial statements. (AR-C 80.01-.02) Rather, the accountant's objective in a compilation engagement is “to apply accounting and financial reporting expertise to assist management in the presentation of financial statements and report without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial ...