Is due care required in compilation?
Also, section 9200 requires a compilation engagement to be performed with due care by individuals who have adequate training and proficiency in accounting. Where work is done by staff, they should be properly supervised.
What is required in a compilation engagement?
When performing compilation, the accountant should prepare adequate documentation that provides information on the work that has been carried out. Some of the documentation includes the engagement letter, financial statements, and communication with management regarding significant issues identified during the audit.
When performing compilation engagement the accountant is required?
02 Because a compilation engagement is not an assurance engagement, a compilation engagement does not require the accountant to verify the accu- racy or completeness of the information provided by management or otherwise gather evidence to express an opinion or a conclusion on the financial state- ments.
How do you conduct a compilation engagement?
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.
Who is responsible for the financial statements in a compilation engagement?
Under a compilation, management takes responsibility for the preparation and presentation of the financial statements. The accountant providing the compilation services should have sufficient industry-level experience and knowledge of the client to compile the financial statements.
What is the purpose of compilation engagement?
In a compilation engagement, the objective is to assist management in presenting financial information in the form of financial statements without undertaking to provide any assurance that there are no material modifications that should be made to the financial statements so they will conform to the acceptable …
What is an example of compilation?
The definition of a compilation is a collection of different things, or the act of gathering and putting together things. When you gather together recordings of all of your favorite songs so you can make a mixed tape, this is an example of a compilation.
What is the major difference between a compilation engagement and a preparation engagement?
In a compilation, SSARS doesn’t require that the compilation report be printed on the accounting firm’s letterhead. In a preparation engagement, there is no report really. You just have to make sure that the financials are clearly marked that no assurance is provided.
How much does a compilation report cost?
A compilation does not include performing inquiries of management or performing any analytical or other procedures ordinarily performed in a Review or Audit. Compiled financial statements generally range in costs from $800 – $3,500 based on the size and complexity of your company and can take 1-2 weeks to complete.
Is an audit an attest engagement?
An audit may be performed to look for gaps in their compliance procedures as an issue may be discovered. … The attestation engagement examines the issue to check if it truly falls outside the parameters of the compliance standard as an opinion is given about the compliance issue.
What is the difference between compilation and review?
In a review engagement, the auditor conducts analytical procedures and makes inquiries to ascertain whether the information contained within the financial statements is correct. … A review requires some testing of the information, while a compilation almost entirely relies on the presented information.
Is a compilation an attest engagement?
Although a compilation is not an assurance engagement, it is an attest engagement.