What is Compilation engagement?
In short
In a compilation, the accountant helps management present financial information as financial statements without obtaining or providing any assurance on them.
Key takeaways
- A compilation report is always issued.
- The accountant may compile statements without being independent, but must disclose the lack of independence in the report.
- A preparation engagement, by contrast, has no report, and each page must state that no assurance is provided.
Where it's tested
AUD: Reviews, Compilations & Agreed-Upon Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An accountant who is not independent may still perform which engagement?