Compilation, defined

A “compilation” engagement involves assisting management in presenting the financial statements (or other historical, pro forma, or prospective financial information) along with the accountant's accompanying report, which provides no assurance about those financial statements (or other financial information). The accountant is also required to comply with the requirements of AR-C 60, General Principles, including meeting the “preconditions” for accepting the compilation engagement. The accountant is not required to be independent for a compilation engagement, since no assurance is provided. Guidance is provided in the Clarified SSARSs, specifically by AR-C 80, Compilation Engagements.