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.
Kings New York Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm In the finance and accounting industry, engagement letters play a crucial role in setting the terms and conditions of service between a client and their accounting firm. Kings New York, a leading accounting firm, offers a comprehensive set of engagement letters specifically tailored for the review of financial statements and compilation services. 1. General Engagement Letter: The general engagement letter is a standard document that outlines the general terms and conditions of the engagement between Kings New York and their client for the review of financial statements and compilation services. It covers aspects such as the scope of work, responsibilities, fees, timelines, and reporting requirements. 2. Review Engagement Letter: The review engagement letter focuses specifically on the review of financial statements. This engagement letter is drafted by Kings New York to formalize their agreement with clients who seek a review engagement service. It includes details about the objectives of the review, the criteria used, the level of assurance provided, and the limitations of the review. 3. Compilation Engagement Letter: The compilation engagement letter caters to clients who require assistance in the compilation of their financial statements. Kings New York offers this letter to define the professional relationship and express the responsibilities of both parties. It specifies that the compiled financial statements are not audited or reviewed and highlights the limitations of the service. 4. Review of Interim Financial Statements Engagement Letter: The review of interim financial statements' engagement letter is designed for clients who need their interim financial statements to be reviewed. Kings New York creates this letter to define the scope of work, procedures followed, and the responsibilities of both parties related to reviewing the interim financial statements. 5. Compilation of Pro Forma Financial Information Engagement Letter: For clients looking to compile pro forma financial information, Kings New York provides this engagement letter. It establishes the terms of the engagement and outlines the procedures and limitations related to compiling pro forma financial information. The Kings New York engagement letters for the review of financial statements and compilation services are crafted with utmost care to ensure transparency and professionalism. They inform clients about the nature of services being provided, set clear expectations, and establish a solid foundation for a smooth and successful working relationship between the accounting firm and their clients.Kings New York Engagement Letter for Review of Financial Statements and Compilation by Accounting Firm In the finance and accounting industry, engagement letters play a crucial role in setting the terms and conditions of service between a client and their accounting firm. Kings New York, a leading accounting firm, offers a comprehensive set of engagement letters specifically tailored for the review of financial statements and compilation services. 1. General Engagement Letter: The general engagement letter is a standard document that outlines the general terms and conditions of the engagement between Kings New York and their client for the review of financial statements and compilation services. It covers aspects such as the scope of work, responsibilities, fees, timelines, and reporting requirements. 2. Review Engagement Letter: The review engagement letter focuses specifically on the review of financial statements. This engagement letter is drafted by Kings New York to formalize their agreement with clients who seek a review engagement service. It includes details about the objectives of the review, the criteria used, the level of assurance provided, and the limitations of the review. 3. Compilation Engagement Letter: The compilation engagement letter caters to clients who require assistance in the compilation of their financial statements. Kings New York offers this letter to define the professional relationship and express the responsibilities of both parties. It specifies that the compiled financial statements are not audited or reviewed and highlights the limitations of the service. 4. Review of Interim Financial Statements Engagement Letter: The review of interim financial statements' engagement letter is designed for clients who need their interim financial statements to be reviewed. Kings New York creates this letter to define the scope of work, procedures followed, and the responsibilities of both parties related to reviewing the interim financial statements. 5. Compilation of Pro Forma Financial Information Engagement Letter: For clients looking to compile pro forma financial information, Kings New York provides this engagement letter. It establishes the terms of the engagement and outlines the procedures and limitations related to compiling pro forma financial information. The Kings New York engagement letters for the review of financial statements and compilation services are crafted with utmost care to ensure transparency and professionalism. They inform clients about the nature of services being provided, set clear expectations, and establish a solid foundation for a smooth and successful working relationship between the accounting firm and their clients.
