In a compilation engagement, the accountant presents in the form of financial statements information that is the representation of management (owners) without undertaking to express any assurance on the statements. In other words, using management's records, the accountant creates financial statements without gathering evidence or opining about the validity of those underlying records. Because compiled financial statements provide the reader no assurance regarding the statements, they represent the lowest level of financial statement service accountants can provide to their clients. Accordingly, standards governing compilation engagements require that financial statements presented by the accountant to the client or third parties must at least be compiled.
Wyoming is a state located in the western United States, known for its vast plains, rugged mountains, and stunning natural beauty. It is the least populous state in the country but offers a wealth of opportunities for both residents and businesses. When it comes to financial matters, businesses often rely on accounting firms to review their financial statements and compile reports to ensure accuracy and compliance. In Wyoming, accounting firms provide various types of reports based on the nature and purpose of the engagement. The following are some commonly used Wyoming reports from review of financial statements and compilation by accounting firms: 1. Compilation Report: A compilation report is a type of report where the accounting firm collects, classifies, and summarizes the financial information provided by a business. The purpose of this report is to present the financial data in a standardized format, ensuring it is properly organized and ready for analysis. It is important to note that a compilation report does not provide any assurance on the accuracy or completeness of the information provided. 2. Review Report: A review report involves a higher level of assurance compared to a compilation report. The accounting firm performs analytical procedures and inquiries to assess the reasonableness of the financial information. The objective is to provide limited assurance that there are no material modifications that should be made to the financial statements. However, a review report does not provide the same level of assurance as an audit. 3. Audit Report: Although not specifically mentioned, an audit report is an important type of report that can be prepared by accounting firms in Wyoming. An audit involves thorough testing, analysis, and evaluation of a company's financial records, systems, and internal controls. The purpose is to provide an independent opinion on the fairness and reliability of the financial statements. An audit report is the most comprehensive and provides the highest level of assurance to users of financial statements. In summary, Wyoming offers various types of reports from review of financial statements and compilation by accounting firms. These reports include compilation reports, review reports, and audit reports. Depending on the specific needs and requirements of a business, the appropriate report can be chosen to ensure accurate financial reporting and transparency.
