When engaged in a compilation, we do not use inquiries, analytical procedures, or review procedures, nor do we need to obtain an understanding of internal controls, or engage in other audit procedures. In short, compilation activities are not designed to provide any assurance regarding the information contained within the financial statements.

A financial statement compilation is the least expensive of the various forms of auditing services (the other two being a review and an audit), and so is preferred by those cost-sensitive companies whose financial statement users are comfortable with this form of engagement. Because there is no assurance that compiled financial statements fairly present the results and financial position of a business, a compilation is not preferred by lenders or creditors.

A compilation engagement may address either a complete set of financial statements or an individual statement.

Under a compilation, management takes responsibility for the preparation and presentation of the financial statements.

When MT and T Accounting undertake to provide the compilation services for a client, we gather sufficient industry-level experience and knowledge of the client to compile the financial statements.

Contact us by email or call 403-923-8804 to discuss the service and how it may work for your firm.