A compilation is a summary of a company’s financial statements performed and written by a CPA that provides no assurance.
A compilation is a basic, non-assured summary of a company’s financial statements performed and written by a CPA.
In a compilation, a CPA reviews and inquires about a business’ financial statements, but does compare them to any of their expectations. Unlike a review or audit, there are no tests performed, and the auditor does not examine any internal controls.
As a result, this method provides no assurance, and the CPA cannot provide any opinion.
Therefore, a compilation should only be used in very simple situations, such as presenting a company’s financial information on a surface level or getting a second set of eyes to review the financial statements.
The CPA performing a compilation is not required to be independent of the business.