Compilation

Accounting Dictionary

Compilation

Putting together financial statements using the client’s data.

Since the accountant is using numbers supplied by the client, he has no idea if the numbers are correct. A client who wanted the bank to lend him money could write down “Income $40,000” when it was actually $20,000. The accountant would have no way of knowing the number was incorrect. Therefore the accountant does not sign the statements or offer any assurances on the reliability or validity of the work. These are unaudited financial statements.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!