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.
San Antonio, Texas Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm An engagement letter is a written agreement between an accounting firm and a client that outlines the scope of services, responsibilities, and expectations for a specific engagement. When it comes to the Review of Financial Statements and Compilation in San Antonio, Texas, several variations of engagement letters exist. 1. Standard Engagement Letter: This is the most commonly used engagement letter for accounting firms in San Antonio, Texas, offering review and compilation services. It outlines the basic terms and conditions of the engagement, including the nature of the work to be performed, client responsibilities, and the fee structure. 2. PC AOB Engagement Letter: This type of engagement letter is specifically designed for accounting firms operating in San Antonio, Texas, that are registered with the Public Company Accounting Oversight Board (PC AOB). It complies with the standards and regulations set by the PC AOB for reviews and compilations of financial statements. 3. Specialized Industry Engagement Letter: San Antonio, Texas, is home to various industries such as healthcare, oil and gas, tourism, and technology. Accounting firms catering to clients in these industries may utilize specialized engagement letters tailored to the unique requirements and regulations of each sector. 4. Agreed-upon Procedures (AUP) Engagement Letter: In some cases, clients may request accounting firms in San Antonio, Texas, to perform agreed-upon procedures rather than a standard review or compilation. This type of engagement letter specifies the specific procedures to be performed, the reporting format, and the expectations of both parties. Keywords: San Antonio, Texas, engagement letter, review of financial statements, compilation, accounting firm, responsibilities, scope of services, PC AOB, client, industry-specific, specialized engagement, agreed-upon procedures.San Antonio, Texas Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm An engagement letter is a written agreement between an accounting firm and a client that outlines the scope of services, responsibilities, and expectations for a specific engagement. When it comes to the Review of Financial Statements and Compilation in San Antonio, Texas, several variations of engagement letters exist. 1. Standard Engagement Letter: This is the most commonly used engagement letter for accounting firms in San Antonio, Texas, offering review and compilation services. It outlines the basic terms and conditions of the engagement, including the nature of the work to be performed, client responsibilities, and the fee structure. 2. PC AOB Engagement Letter: This type of engagement letter is specifically designed for accounting firms operating in San Antonio, Texas, that are registered with the Public Company Accounting Oversight Board (PC AOB). It complies with the standards and regulations set by the PC AOB for reviews and compilations of financial statements. 3. Specialized Industry Engagement Letter: San Antonio, Texas, is home to various industries such as healthcare, oil and gas, tourism, and technology. Accounting firms catering to clients in these industries may utilize specialized engagement letters tailored to the unique requirements and regulations of each sector. 4. Agreed-upon Procedures (AUP) Engagement Letter: In some cases, clients may request accounting firms in San Antonio, Texas, to perform agreed-upon procedures rather than a standard review or compilation. This type of engagement letter specifies the specific procedures to be performed, the reporting format, and the expectations of both parties. Keywords: San Antonio, Texas, engagement letter, review of financial statements, compilation, accounting firm, responsibilities, scope of services, PC AOB, client, industry-specific, specialized engagement, agreed-upon procedures.
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.
