How much does a compilation report cost?
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 a representation letter required for a compilation?
The compilation standards do not require practitioners to obtain a management representation letter, but this does not mean that it’s not a prudent thing to do.
Does a compilation give assurance?
A compilation is the one of the lowest level financial statement services an accountant can provide. There is no assurance being provided by the accountant. A compilation does not contemplate the accountant performing inquiry, analytical procedures or other procedures.
How does the review of a nonpublic company financial statements differ from an audit?
A review is similar to an audit. However, where an audit report will state an affirmative opinion regarding the accuracy of the financials, a review provides only limited assurance that the CPA did not find evidence of material misstatement within the financial reporting.
Are compilations an attest service?
Compilations. The third type of attestation services a CPA may provide is a compilation. In a compilation, the CPA compiles the books and records of a client without any performance of substantive procedures, verification or confirmation of balances.
Who is allowed to compile financial statements?
The business owner or company accountant or any other employee (hopefully with some accounting knowledge!) can draw up the financial statements internally. Alternatively, they can be compiled independently by an accounting professional on the basis of accounting records provided by the company.
Is independence required for compilation?
The standard states that independence is not required for compilation engagement. However, when the professional accountant is not independent a statement to that effect is made in the accountant’s report.
Do compilations need to be independent?
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.
Does a compilation require independence?
While independence is required at the other levels of service, the CPA does not have to be independent of your organization to perform a compilation. The report must state that the accountant is not independent. Further options lie within the compilation level of service.
What is the difference between a compilation and a review?
A compilation is a basic summary of your company’s financial statements written by a CPA using data provided by your company. Unlike a review or an audit, this method provides no assurance. There are no tests performed, and the auditor does not examine any internal controls.
