What type of engagement is a compilation?
A compilation engagement is a type of engagement where a company engages an outside accountant to prepare and present financial statements. It is not designed to express an opinion or provide assurance regarding the information contained in the financial statement.
Is a compilation a Nonattest service?
When the accountant prepares financial statements and performs a related compilation, the creation of the financial statements is a nonattest service with no particular guidance–not even from SSARS 21. (Of course, the AICPA Code of Professional Conduct applies to all services.)
Why is a compilation an attest engagement?
A compilation is an attest engagement only, not an assurance engagement.” The explanation justifies it as an attest engagement because attest engagements require independence as set forth in SSARS.
What are attest engagements?
15 An agreed-upon procedures attest engagement is one in which a prac- titioner is engaged to issue a report of findings based on specific procedures performed on subject matter.
How much does a compilation cost?
A compilation does not include performing inquiries of management or performing any analytical or other procedures ordinarily performed in a Review or Audit. Compiled financial statements generally range in costs from $800 – $3,500 based on the size and complexity of your company and can take 1-2 weeks to complete.
Is an audit an attest engagement?
An audit may be performed to look for gaps in their compliance procedures as an issue may be discovered. … The attestation engagement examines the issue to check if it truly falls outside the parameters of the compliance standard as an opinion is given about the compliance issue.
What is the difference between attest and Nonattest services?
In basic terms, nonattest services are not related to the performance of an attest engagement, where an attest engagement is one requiring independence within certain bodies of technical standards included in the overarching AICPA Professional Standards: specifically, standards related to auditing, accounting and …
Does compilation engagement require independence?
The CPA expresses no assurance about the accuracy of the financial statements presented. … While independence is required at the other levels of service, the CPA does not have to be independent of your organization to perform a compilation. The report must state that the accountant is not independent.
Is review an attest service?
There are three types of attestation services: compilation, review and audit. “Review and compilation engagements can be completed more quickly, cost less and have less involvement of company staff,” Kovacs explains.
What type of service is a compilation?
A compilation is the one of the lowest level financial statement services an accountant can provide. A compilation consists essentially of presenting information obtained from a client in financial statement format.
What does an attest engagement require?
Assertions. All attestation engagements require that a management’s assertion be requested from the responsible party. The responsible party are those individuals who represent the information presented within an attestation report. This information is the basis for the auditor’s opinion.
What is the most common type of attest engagement?
3. What is the most common type of attest engagement? What is most frequently being “asserted” by management on this type of engagement? –A financial statement audit.
What does non attest mean?
Nonattest services are services provided to a client that are not specifically related to the performance of an attest engagement. For example, nonattest services include activities such as financial statement preparation, cash to accrual conversions, reconciliations, and tax return preparation.