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Compilation letter sample

Compilation letter sample 2025

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The document is a compilation engagement letter from certified public accountants to the governing board of a drainage district in Louisiana. It outlines the terms and objectives of compiling the district's financial statements for the year ended June 30, 20X1, including responsibilities of both the accountants and management, limitations of the compilation services, and reporting requirements. The letter emphasizes that no audit or review will be performed, thus no assurance on the financial statements will be provided. It also details compensation, engagement documentation confidentiality, and approval processes.

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Who can issue compilation engagement report?

While you or your bookkeeper can maintain your financial records and produce internal reports, only a professional accountant can issue a compilation report because it adheres to specific accounting standards.

Do you have to be a CPA to issue a compilation report?

Only a CPA can prepare an audited financial statement and a reviewed financial statement. However, both CPAs and non-certified accountants, including bookkeepers, can prepare compiled financial statements.

What is a compilation letter?

A compilation report is a formal letter from the CPA indicating that they have performed a compilation of the financial statements. The report outlines: The scope of the work performed. The organizations responsibilities. The accountants responsibilities.

How do I write a compilation report?

The compilation report should include essential elements like statements that the financial statements are the responsibility of management, that the accountant has compiled the statements, that the accountant did not perform a review or an audit, and expresses no opinion on the statements, and must be signed and dated

Can a CPA who is not independent issue a compilation report?

The CPA does not have to be independent, but the CPA must indicate a lack of independence, if applicable, in the report. The business obtains comfort that the financial statements appear to be appropriate in form and there are no obvious material modifications needed.

Who can do a compilation report?

Preparing Compilation Report: The accountant will prepare a compilation report, clearly communicating that the information provided by the management was not audited or reviewed by the accountant.

What is an example of a compilation?

Example of a Compilation A company prepares its own monthly financial statements by using popular accounting software. However, as part of the companys loan agreement with its bank, the company must provide the bank with annual financial statements that have been compiled by a certified public accountant.

Compilation letter sample 2025

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