- 594 Chadmon Court, Dacula, GA 30019
Compilation Services
Compilation services involve the preparation and presentation of financial statements based on information provided by the company’s management. In a compilation, the CPA does not provide any assurance regarding the accuracy or completeness of the financial statements. It is the most basic service, focusing on assembling financial data into a standard format.
Key Features of Compilation Services:
- No Assurance Provided: The CPA is not required to verify the accuracy of the financial information or assess the company’s internal controls. Therefore, no opinion or assurance is expressed on the financial statements.
- Management Responsibility: The financial data is provided entirely by management, and the CPA simply compiles the information. The CPA does not test the information for accuracy, but they must understand the business’s accounting framework and apply general knowledge to present the data properly.
- Objective: The purpose is to present financial data in the format of formal financial statements, such as an income statement, balance sheet, and cash flow statement, for internal use or to share with stakeholders like lenders or investors.
- Engagement Letter: A formal engagement letter is signed between the CPA and the client to specify the scope of the work, the responsibilities of both parties, and the limitations of the service.
- Report: The CPA issues a report that accompanies the financial statements, stating that no assurance is provided and that the information is based on the management’s data.
When to Use Compilation Services:
- When financial statements are needed for internal purposes or to satisfy lenders who do not require assurance.
- For small to mid-sized businesses that want financial statements without the cost or need for a higher level of assurance.
- For companies that want to use the financials to prepare tax returns or make business decisions but are not subject to stringent external reporting requirements.
Our Services
How we can help you?
Contact us now or submit a business inquiry online.