A compilation is the lowest level of reporting that a CPA can provide to a client. Although a compilation may sound fairly straightforward, there are multiple levels of reporting that may be required. Generally a compilation is completed due to a bank covenant. However, certain organizations may require a set of compiled financial statements as part of their operating agreement. Some of the common types of compiled financial statements consist of the following. This listing is in order of the most comprehensive reporting to the least comprehensive reporting.
Generally Accepted Accounting Principles(GAAP) With Financial Statement Disclosures
Generally Accepted Accounting Principles(GAAP) With Limited Financial Statement Disclosures
GAAP Without Disclosures
Tax Basis With Disclosures
Tax Basis Without Disclosures
Management Use Only
One Major Update that has occurred recently. ALL compilation engagements must have an annual engagement letter.