Compiled financial statements represent the most basic level of service that certified public accountants provide with respect to financial statements. In a compilation, the CPA must comply with certain basic requirements of professional standards, such as having a knowledge of the client's industry and applicable accounting principles, having a clear understanding with the client as to the services to be provided, and reading the financial statements to determine whether there are any obvious departures from generally accepted accounting principles (or, in some cases, another comprehensive basis of accounting used by the entity). It may be necessary for the CPA to perform "other accounting services" (such as creating a general ledger for the client, or assisting the client with adjusting entries for the books of the client (before the financial statements can be prepared). Upon completion, a report on the financial statements is issued that states a compilation was performed in accordance with AICPA professional standards, but no assurance is expressed that the statements are in conformity with generally accepted accounting principles. This is known as the expression of "no assurance." Compiled financial statements are often prepared for privately-held entities that do not need a higher level of assurance expressed by the CPA.
Cook Illinois Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm In the realm of financial reporting, an engagement letter holds immense significance as it outlines the scope, objectives, and responsibilities of both the client and the accounting firm. Cook Illinois, a renowned accounting firm, understands the importance of transparency and accuracy in financial statements. Hence, it provides various types of engagement letters for reviews of financial statements and compilations. 1. Cook Illinois Engagement Letter for Review of Financial Statements: This engagement letter is specifically designed for clients who require a comprehensive review of their financial statements. It involves an in-depth assessment of financial data, internal controls, and disclosures to ensure compliance with accounting standards and regulations. Cook Illinois aims to offer an unbiased evaluation of the financial statements to enhance transparency and reliability. 2. Cook Illinois Engagement Letter for Compilation of Financial Statements: For clients seeking compilation services, Cook Illinois offers an engagement letter tailored to meet their needs. This engagement letter primarily focuses on assisting clients in the preparation and presentation of financial statements. While Cook Illinois does not review or audit the statements, it ensures the data is accurately compiled from the client's records and presents the information in accordance with applicable accounting principles. The Cook Illinois Engagement Letter for Review of Financial Statements and Compilation serves as a contract between the firm and the client, establishing the terms and conditions of the engagement. It typically includes the following key components: 1. Objective and Scope: Clearly defines the objective of the engagement, be it a review or compilation of financial statements, along with the scope of work to be performed. 2. Responsibilities: Outlines the responsibilities of the client, such as providing complete and accurate financial records, ensuring internal controls, and complying with applicable laws and regulations. It also delineates the responsibilities of Cook Illinois, including the level of assurance provided and the extent of procedures undertaken. 3. Timelines: Specifies the agreed-upon timeline for the completion of the engagement, including any interim reporting requirements. 4. Fees and Payment Terms: States the fees associated with the engagement, including hourly rates or fixed fees, and the payment terms agreed upon by both parties. 5. Confidentiality and Non-disclosure: Emphasizes the importance of maintaining the confidentiality of client information and prohibits the accounting firm from sharing any confidential data without the client's consent. 6. Termination: Outlines the conditions and procedure for terminating the engagement by either party, as well as any applicable repercussions. By offering these comprehensive engagement letters, Cook Illinois ensures a clear understanding and alignment between the client and the accounting firm. This transparency fosters trust and enables both parties to work efficiently towards achieving accurate and reliable financial statements.Cook Illinois Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm In the realm of financial reporting, an engagement letter holds immense significance as it outlines the scope, objectives, and responsibilities of both the client and the accounting firm. Cook Illinois, a renowned accounting firm, understands the importance of transparency and accuracy in financial statements. Hence, it provides various types of engagement letters for reviews of financial statements and compilations. 1. Cook Illinois Engagement Letter for Review of Financial Statements: This engagement letter is specifically designed for clients who require a comprehensive review of their financial statements. It involves an in-depth assessment of financial data, internal controls, and disclosures to ensure compliance with accounting standards and regulations. Cook Illinois aims to offer an unbiased evaluation of the financial statements to enhance transparency and reliability. 2. Cook Illinois Engagement Letter for Compilation of Financial Statements: For clients seeking compilation services, Cook Illinois offers an engagement letter tailored to meet their needs. This engagement letter primarily focuses on assisting clients in the preparation and presentation of financial statements. While Cook Illinois does not review or audit the statements, it ensures the data is accurately compiled from the client's records and presents the information in accordance with applicable accounting principles. The Cook Illinois Engagement Letter for Review of Financial Statements and Compilation serves as a contract between the firm and the client, establishing the terms and conditions of the engagement. It typically includes the following key components: 1. Objective and Scope: Clearly defines the objective of the engagement, be it a review or compilation of financial statements, along with the scope of work to be performed. 2. Responsibilities: Outlines the responsibilities of the client, such as providing complete and accurate financial records, ensuring internal controls, and complying with applicable laws and regulations. It also delineates the responsibilities of Cook Illinois, including the level of assurance provided and the extent of procedures undertaken. 3. Timelines: Specifies the agreed-upon timeline for the completion of the engagement, including any interim reporting requirements. 4. Fees and Payment Terms: States the fees associated with the engagement, including hourly rates or fixed fees, and the payment terms agreed upon by both parties. 5. Confidentiality and Non-disclosure: Emphasizes the importance of maintaining the confidentiality of client information and prohibits the accounting firm from sharing any confidential data without the client's consent. 6. Termination: Outlines the conditions and procedure for terminating the engagement by either party, as well as any applicable repercussions. By offering these comprehensive engagement letters, Cook Illinois ensures a clear understanding and alignment between the client and the accounting firm. This transparency fosters trust and enables both parties to work efficiently towards achieving accurate and reliable financial statements.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
