A financial statement compilation is a service to assist the management of a business in presenting its financial statements. This presentation involves no activities to obtain any assurance that there are no material modifications needed for the financial statements to be in conformity with the applicable accounting framework.

When engaged in a compilation, we do not use inquiries, analytical procedures, or review procedures, nor do we need to obtain an understanding of internal controls, or engage in other audit procedures. In short, compilation activities are not designed to provide any assurance regarding the information contained within the financial statements.

A financial statement compilation is the least expensive of the various forms of auditing services (the other two being a review and an audit), and so is preferred by those cost-sensitive companies whose financial statement users are comfortable with this form of engagement. Because there is no assurance that compiled financial statements fairly present the results and financial position of a business, a compilation is not preferred by lenders nor creditors.

A compilation engagement may address either a complete set of financial statements or an individual statement.

Under a compilation, management takes responsibility for the preparation and presentation of the financial statements.

When Paran & Associates Accounting Services undertakes to provide the compilation services for a client, we gather sufficient industry-level experience and knowledge of the client to compile the financial statements.

Contact us by email or by telephone to discuss the service and how it may work for your firm.