• Similar to an ‘audit’ but provides no assurance

• Non-public entities only. Follows SSARS

• CPA must understand client/industry
• Read FS & consider whether FS appear to be appropriate &
free from obvious material error.
• CPA not required to make inquiries or perform other
procedures to verify, corroborate, or review info supplied by
the client.
• If/when CPA becomes aware of incorrect etc info., CPA must
obtain addt’l info or revised info from client. If client refuses
to provide or correct info, CPA should withdraw from
compilation.
• Independence is not required
• Mgmt rep letter is not required
• FS used by a 3rd party, CPA must issue a report & no
engage. letter required
• FS used only by mgmt, CPA may either issue a report OR
use an engagement letter re: services to be performed &
limitation on use of FS.
• Report date is the date compilation is completed &
signature can be either manual or printed & doesn’t have to be
on CPA’s letterhead.
• Each page of FS is marked ‘see compilation report’
• Standard report is 2 paragraphs:
• 1st Comp has been performed in accordance w/SSARS
• 2nd Comp is limited to presenting in form of FS info that is
representation of mgmt. FS have NOT been audited or
reviewed & accordingly, CPA does NOT express opinion or
any other form of assurance on them.
• FS may omit note disclosures, but CPA must add a 3rd
paragraph stating so.
• When CPA is aware of GAAP departure (other than omission of
note disclosures) a sentence ‘we did become aware of a
departure from GAAP that is explained in the following
paragraph’ is added to end of 2nd paragraph & then a 3rd
paragraph would describe matter.
• If comprehensive basis other than GAAP is used, 3rd para is
added. If FS does not disclose basis of acctg used, CPA should
disclose basis in comp report
Completeness- All transactions and events have been
recorded.

Proper period cutoff – Transactions & events have been

recorded in the correct accounting period.

Accuracy- Amounts & other data relating to recorded

transactions have been recorded appropriately.

Classification – Transactions and events have been

recorded in the proper accounts.

Occurrence- Transactions and events that have been

recorded have occurred and pertain to the entity

Completeness- All assets, liabilities & equity interests

have been recorded.

Allocation & Valuation - Assets, liabilities, and equity

interests are included at appropriate amounts.

Rights & obligations - The entity holds or controls the

rights to assets, & liabilities are the obligations of the
entity

Existence- Assets, liabilities, & equity interests exist

Completeness- All disclosures that should have been

included have been included.

Understandability & Classification – Information is

presented & described clearly.

Rights & Obligations- Disclosed events pertain to the

entity

Valuation & Accuracy – Information is disclosed fairly &

at appropriate amounts.

Occurrence- Disclosed events & transactions have

occurred.