Wiley Practitioner's Guide to GAAS 2022

65AR-C 80 Compilation Engagements

• Scope
• Objectives and Limitations of Compilation Engagements
  • Objective
• Definitions of Terms
• Requirements
  • Ethics and Independence Requirements
  • Acceptance and Continuance of Client Relationships
  • Establishing an Understanding
  • Compilation Performance Requirements
  • Documentation in a Compilation Engagement
  • Reporting on the Financial Statements
  • Change in Engagement from Audit or Review to Compilation
• Illustration—Checklist for a Compilation Engagement
• Illustrative Engagement Letters
• Illustrative Examples of the Accountant's Compilation Report on Financial Statements
• Illustrative Report Paragraphs—Required Supplementary Information

SCOPE

AR-C 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. (AR-C 80.01) When engaged to compile pro forma financial information, the accountant must also comply with the requirements in AR-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 80.02)

OBJECTIVES AND LIMITATIONS OF COMPILATION ENGAGEMENTS

It is important to note that the requirements in AR-C 60 apply to all SSARS engagements, including compilation engagements. Readers should apply ...