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

A CPA is not required to be independent of the organization in order to perform this type of service. The objective of a compilation is to apply accounting and financial reporting expertise to assist management in the presentation of financial statements, without providing any assurance on those financial statements.

What is a compilation report?

Compilation report A compilation report is a report prepared by the accountant tasked with performing compilation service by a client and should accompany the compiled financial statements. Unlike an audit or review report, a compilation report comprises a single paragraph, without paragraph titles.

What elements are mandatory to be included in a compilation report?

Mandatory elements to be included in a compilation report are: a title of the report, and the addressee statement that the engagement is performed in accordance with the Standard. if applicable, a statement that the member is not independent from the client.

How do I write a compilation report?

The compilation report should: Include a statement that management (owners) is (are) responsible for the financial statements. Identify the financial statements. Identify the entity. Specify the date or period covered. Include a statement that the compilation was performed in accordance with SSARS.

What is the purpose of a compilation?

A compilation consists essentially of presenting information obtained from a client in financial statement format. There is no assurance being provided by the accountant.

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What is a compilation statement?

A compilation refers to a company's financial statements that have been prepared or compiled by an outside accountant. A compilation is usually part of an accounting firm's write-up service.

Can non CPA issue compilation report?

AICPA Council Votes To Permit CPAs In Non-CPA Firms To Issue Compilations. At its May meeting, the AICPA Council passed a resolution to permit CPAs in non-CPA firms to issue compilation reports under the Statements on Standards for Accounting and Review Services.

What is included in a compilation report?

Unlike an audit or review report, a compilation report comprises a single paragraph, without paragraph titles. It should identify the entity (client), compiled financial statements, and the period covered.

What is the purpose of a compilation report?

A compilation report should accompany the compiled financial statements to indicate that the financial statements 1) are the representation of the company's management, and 2) have not been reviewed or audited and therefore the accountant does not offer an opinion or any assurances on the financial statements.

What is an accountants compilation report?

An accounting compilation is composed of financial statements that are prepared by a company's outside accountant. The accountant takes the data provided by a business and creates financial statements, which usually does not include auditing or any other extra services.

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