Reliable CPA Report.
Compilation Service.

A CPA compilation is an accounting service in which a CPA assists management with presenting financial information in the form of financial statements. Unlike an audit or review, a compilation doesn’t provide assurance on the financial statements. It also skips the testing and analytical procedures used in those engagements.

A compilation may be the right fit when a business needs professionally presented financial statements. This works well when a lender, investor, regulator, or other stakeholder doesn’t require audited or reviewed statements.

Download a Sample CPA Compilation Report to see what a typical report looks like.

A CPA compilation focuses on presenting financial information provided by management in the form of financial statements. The CPA does not provide assurance on those financial statements.

Depending on the engagement, the process may include:
1. Reviewing the accounting information provided by management
2. Organizing financial data for financial statement presentation
3. Preparing or presenting financial statements
4. Communicating with management about information needed for the engagement
5. Addressing certain presentation or classification issues
6. Preparing the appropriate compilation report
7. Providing the completed financial statements to the client

The CPA relies on the information management provides. It doesn’t perform the same level of testing and verification an audit requires.

The cost of a CPA compilation typically ranges from $1,000 to $4,500, depending on the size of the organization, number of accounts, and the condition of the accounting records. Smaller businesses with clean books are usually on the lower end. Organizations with multiple accounts, prior-year issues, or incomplete records may fall on the higher end.

A compiled financial statement differs significantly from both a review and an audit. First, a compilation does not include testing, analytical procedures, or verification of balances. The CPA simply assists in presenting the financial information provided by management. In contrast, a CPA review includes analytical procedures and inquiries, which provide limited assurance that the financial statements are free from material misstatement.

Finally, a CPA audit provides the highest level of assurance. During an audit, the CPA performs detailed testing and gathers supporting evidence before expressing an opinion on the financial statements.

You will need to provide your accounting records, trial balance, general ledger, bank statements, supporting schedules, or any other relevant documentation. We will outline exactly what is required and guide you through any missing items.

A compilation engagement does not include ongoing bookkeeping services. Instead, the CPA focuses on presenting financial statements based on the information management provides. However, cleanup work or adjusting entries may be necessary before the financial statements can be compiled. If we identify cleanup requirements, we will explain them clearly and outline the scope before proceeding.

Yes. Nonprofits can use a CPA compilation when a funder, board, or regulatory body requires formally presented financial statements but does not specifically require a review or audit. Compilations are performed in accordance with SSARS standards issued by the AICPA and are appropriate for organizations that need professional financial reporting at a lower cost.

The timeline for a CPA compilation depends on the complexity of the organization, completeness of the accounting records, and whether cleanup or adjusting entries are needed. Tafe will establish an expected timeline based on the scope of the engagement and the information available.