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STANDARD INDEPENDENT ACCOUNTANTS COMPILATION REPORT To Management Bergamo Acquisition Corp and Subsidiaries Henderson, Nevada We have compiled the accompanying consolidated balance sheet of Bergamo.
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Llbradford FAQ
Preparation of your financial statements is one of the last steps in the accounting cycle, using information from the previous statements to develop the current financial statement.
While it is possible for the accountant to perform only a compilation and not prepare the financial statements, most compilation engagement letters will state that the following will be performed by the accountant: Preparation of the financial statements (a nonattest service) A compilation service (an attest service)
A compilation is literally a compilation of financial records into a format required by accounting standards. When this work is performed by an auditor it is referred to as a “compilation” and accounting standards require the auditor to assess whether the records are free from obvious errors.
In a preparation engagement, the accountant is literally preparing the financial statements based on information management provides (e.g. trial balances). In a compilation engagement, management prepares the financial statements, and the accountant will read and help finalize the financial statements.
An accountant tasked with the responsibility of providing compilation services is required to possess sufficient industry-level knowledge of the client. He or she is not required to be independent of the company requiring compilation services in order to perform such a form of engagement.
A review requires some testing of the information, while a compilation almost entirely relies on the presented information. Understanding of internal control. The auditor only tests the internal controls of the client in an audit; no testing is conducted for a review or a compilation.
A CPA prepared compilation is a standardized presentation that provides additional information useful to management, creditors, and investors.
A preparation engagement is a non-attest service provided by Certified Public Accountants in which they are engaged to prepare financial statements or prospective financial information. As it is a non-attest service, the accountant does not have to be independent of the client entity.
Unadjusted Related content
Sample Compilation Engagement Agreement...
Objectives The objective of our engagement is to apply accounting and financial reporting...
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