Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
25 views1 page

Compilation Engagement Basics

A compilation engagement involves applying accounting and financial reporting expertise to financial information provided by management, but does not include performing procedures to verify or assess the reliability of the information. The practitioner does not express any assurance on the compiled financial information in a compilation engagement. A compilation engagement report communicates that the engagement was not an assurance engagement and does not express an opinion on whether the information is materially misstated.

Uploaded by

sylvester
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
25 views1 page

Compilation Engagement Basics

A compilation engagement involves applying accounting and financial reporting expertise to financial information provided by management, but does not include performing procedures to verify or assess the reliability of the information. The practitioner does not express any assurance on the compiled financial information in a compilation engagement. A compilation engagement report communicates that the engagement was not an assurance engagement and does not express an opinion on whether the information is materially misstated.

Uploaded by

sylvester
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Section 5

5. FUNDAMENTAL PRINCIPLES APPLICABLE TO COMPILATION


ENGAGEMENTS

5.1 NATURE OF A COMPILATION ENGAGEMENT


The procedures employed in a compilation engagement are not designed, and do not enable the practitioner, to
express any assurance on the financial information. The users of the compiled financial information derive benefit
from application of the practitioner’s expertise in accounting and financial reporting and compliance with
professional standards, including delivering the service in accordance with the ethical principles of integrity,
objectivity, professional competence and due care.
A compilation engagement does not entail performance of the types of procedures that provide a basis for the
practitioner to express assurance on the compiled financial information. During a compilation engagement the
practitioner is not ordinarily required to:

 Make any enquiries of management to assess the reliability and completeness of the information
provided;

 Assess internal controls;

 Verify any matters; or

 Verify any explanations.


The practitioner’s report is therefore not a vehicle to express an opinion or conclusion on the compiled financial
information, or whether the practitioner is aware that the compiled financial information is materially misstated or
misleading. To avoid misunderstanding the practitioner is required to communicate that the compilation is not an
assurance engagement when agreeing the terms of the engagement and in the practitioner’s report.

South African Institute of Professional Accountants 1

You might also like