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.
Cuyahoga County is one of the 88 counties in the state of Ohio, located in the northeastern part of the state. It is named after the Cuyahoga River, which runs through the county and into Lake Erie. The county seat is Cleveland, the second-largest city in Ohio and a major economic hub in the region. Cuyahoga County is known for its diverse population, vibrant culture, and rich history. It is home to numerous attractions, including the Rock and Roll Hall of Fame, Cleveland Museum of Art, Cleveland Orchestra, and Cleveland Metro parks Zoo. The county offers a wide range of recreational activities, including hiking, fishing, boating, and biking, thanks to its beautiful parks and lakefront access. In terms of its financial statements, Cuyahoga County prepares reports that undergo review and compilation by accounting firms. These reports provide crucial information about the county's financial position, performance, and cash flow. They are prepared in accordance with generally accepted accounting principles (GAAP) to ensure accuracy, transparency, and consistency. Reports from Review of Financial Statements by Accounting Firm: 1. Independent Auditor's Report: This report is issued by an independent accounting firm after conducting an audit of Cuyahoga County's financial statements. It provides an opinion on the fairness of the financial statements and the accounting practices followed by the county. 2. Management's Discussion and Analysis (MDA): The MDA section provides a comprehensive analysis and explanation of the financial statements, discussing significant trends, events, and uncertainties that impact the county's financial performance. It enables stakeholders to gain insights into the financial health and stability of Cuyahoga County. Reports from Compilation by Accounting Firm: 1. Compilation Report: This report is issued by an accounting firm after compiling the financial statements of Cuyahoga County based on information provided by county management. Unlike a review or an audit, a compilation does not offer any assurance on the accuracy or completeness of the financial statements. It is primarily a preparation service that helps in organizing financial data in a proper format. 2. Notice to Reader: This type of report typically accompanies unaudited financial statements. It informs the readers that the financial statements have been compiled by an accounting firm without assurance, review, or audit procedures. It serves as a disclaimer, making users aware that the financial information has not undergone scrutiny similar to an audit or review. These reports play a vital role in facilitating transparency, accountability, and decision-making for Cuyahoga County officials, stakeholders, and the public. They offer a comprehensive overview of the county's financial health, allowing for informed analysis and planning for future growth and development.
