The objective of a Compilation Engagement is to arrange client-supplied financial information into financial statements that are arithmetically correct and not false or misleading. 

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The CPA is not required to examine or review information supplied by the client. Compilation engagements are not the same as assurance engagements as they do not provide users with assurance over the accuracy and completeness of the compiled financial information provided by management.

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The CPA is still required to apply CPA Canada's professional standards applicable to 'Canadian Standards on Related Services 4200' (CSRS 4200) when executing a compilation engagement.

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The value of a compilation engagement results from the practitioner adhering to the following:
 

Assisting management with preparing the compiled financial information in accordance with a basis of accounting selected by management, including a note in the compiled financial information that describes that basis of accounting.

• Ensuring the client understands the limitations of the engagement​
   

Complying with professional standards specific to CSRS 4200, including relevant ethical requirements (CPA Canada / CPA Ontario)

• The work is completed with professional skill and care​

• The engagement is performed by a person with adequate technical accounting training

• The work is planned and executed according to plan
   

Issuing a compilation engagement report that clearly communicates the nature and limitations of the engagement along with the practitioner’s and management’s responsibilities.

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A compilation engagement is most appropriate where the client and other users do not need financial information that conforms in all respects to generally accepted accounting principles, where audit and review assurance is not required, and where the client understands that the statements may not be appropriate for general purpose use.

 

A compilation engagement is sometimes undertaken to financial statements are prepared for the exclusive use of a company’s management team and/or for income tax purposes. 

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We at Minhas CPA are happy to go over your specific needs.