Welcome to FindMyBest CPA
Accounting & Financial Directory
Find local and nationwide accounting and financial businesses. We have located the best Accountants, CPAs, Accounting Firms, Tax Consultants, Tax Return Preparers, Bookkeepers and Financial Advisors in the US.
Business Directory
Tax & Accounting Articles - Public Accounting
CPA's Find New Clients Today
FindMyBestCPA Search
User Details
Reviews and Comments
Search top city
Atlanta Accountants
Boston Accountants
Chicago Accountants
Dallas Accountants
Detroit Accountants
Huston Accountants
Los Angeles Accountants
Miami Accountants
New York Accountants
Philadelphia Accountants
San Francisco Accountants
Washington Accountants
List of General Articles
Fortune 500 Company List
Business Entity Types
Public Accounting
Other Taxes
Accounting Tools
Income Taxes
IRS Tax Forms
Financial Statements
Other Types of Accounting
Governing Bodies and Regulations
Accounting and Terminology
Tax & Accounting Sub Category Articles
CPA's Find New Clients For Your Firm
Accounting Information > Public Accounting > Compilation
Compilation and Review

Sometimes a CPA provides compilation and review services, which do not involve expressing an opinion on the financial statements. A compilation is defined as presenting as financial statements information which is the representation of management without endeavoring to express any assurance on the financial statements. Before agreeing to compile financial statements for an organization, the CPA should have an understanding of the industry and the nature of the business involved. This understanding should include the form of its financial and accounting records, the accounting basis to be used for the presentation of the financial statements, the form and contents of the financial statements, and the credentials of its accounting personnel.


A CPA is not required to perform any procedures or to make any inquiries in order to verify the information they have been provided, except when the information appears to be incorrect or incomplete. A reference should be on every page of the compiled financial statements with wording such as “See Accountant’s Compilation Report.” The organization may choose to leave out most of the disclosures required by generally accepted accounting principles, as long as the report accompanying the financial statements reveals this fact, and as long as the omission is not done in order to mislead users of the financial statements.

If the organization includes all disclosures that are required by generally accepted accounting principles, this would be stated in the accountant’s report. Sometimes, the financial statements are presented on a form provided by the organization, and the form entails departures from GAAP, such as less than full disclosure. In this case, the accountant’s report would state that the statements differ from generally accepted accounting principles for this reason.

In any case, the accountant’s report for the compilation of financial statements includes a statement that a compilation is limited to presenting the information that is a representation of management in the form of financial statements. The accountant also states that he or she has not audited or reviewed the financial statements and is not expressing an opinion or any assurance on the statements.

When a CPA reviews the financial statements of a nonpublic company, a limited level of assurance is provided. A review is defined as carrying out inquiry and analytical procedures to provide the accountant with a reasonable basis for giving limited assurance of the absence of the need for any material modifications to the statements in order for them to be in conformity with GAAP, or another accounting basis, if applicable. Before completing a review, the CPA needs to understand both the accounting practices and principles of the client’s industry, and the client’s organization, which includes how it operates as well as the composition of its assets, liabilities, revenues, and expenses.

The CPA is not required to compile evidence to support the inquiries and analytical procedures, unless he or she suspects that the information might be incorrect or incomplete. Every page of the financial statements should have a reference, like “See Accountant’s Review Report.” The report issued with a review details the scope of the review, disclaims an opinion on the financial statements, and provides negative assurance on the conformity with GAAP.

Are you looking for someone to help you with your accounting needs? Do you need a professional to assist you with compiling or reviewing your financial statements? You have come to the right place! Try the CPA search feature on this website to find a qualified professional in your area to help you with all your tax and accounting needs.

© Copyrights 2007, All Rights Reserved.
Home     AboutUs     CPA Directory     List Your Firm     Links     Privacy     Contact Us