Neat Audit Compilation Engagement

The three most common types of assurance services are audit review and compilation.

Audit compilation engagement. Essentially a compilation requires the auditor to simply present financial statements based on the representations made by management with no effort to verify this information. Included with the financial statements that are prepared is a report that is called a Notice to Reader stating that the financial statements are unaudited and that there is no assurance provided by the CPA that the amounts are free from materially misstatements. If you have questions or need assistance please contact our office at 6105445900.

The compilation engagement is performed in accordance with Statements of Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants AICPA. Professional assurance services which may include an audit or a review engagement will strengthen your business partners trust in your financial statements and data. A compilation engagement is an attest nonassurance service.

The much-anticipated new CSRS 4200 Compilation Engagements was issued in February 2020 replacing Section 9200 Compilation Engagements. The Guide to Compilation Engagements is intended to help practitioners understand the. An Audit Engagement provides the highest level of assurance and can only be performed by licensed Chartered Professional Accountants.

In a review engagement. Audit review and compilation engagements Having reliable financial information is vital to a companys decision making. Click on the link below to download the PDF for this brochure which can be personalized for your firm.

It updates and strengthens the requirements and guidance for accepting conducting and reporting on compilation engagements. This brochure compares a basic financial statement preparation compilation review and audit engagements and can assist you in educating your clients on the differences between the levels of service. Compilation Engagement ISRS 4410 Compilation Review Audit 9 Compilation Engagement.

The objective of a compilation engagement is for the accountant to use accounting expertise as opposed to a uditing expertise to collect classify and summarize financial information. Depending on the stakeholders involved you may require an audit a review or a compilation. Compilation requires the accountant to gain knowledge of the business including the financial accounting systems applied and prepare the financial information as financial statements.