Compilation and Review of Financial Statements
1. This statement defines the compilation of financial statements and the review of financial statements of a nonpublic entity and pro-vides guidance to accountants concerning the standards and pro-cedures applicable to such engagements.1 The accountant is required to issue a report whenever he completes a compilation or review of the financial statements of a nonpublic entity in com-pliance with the provisions of this statement. The accountant should not issue any report on the unaudited financial statements of a nonpublic entity or submit such financial statements to his client or others unless he complies with the provisions of this statement.
2. The statement recognizes that accountants may perform other accounting services either in connection with the compilation or review of financial statements or as a separate service. The state-ment distinguishes such services from a compilation and from a review. The statement does not establish standards or procedures for such other accounting services, examples of which follow:
a. Preparing a working trial balance.
b. Assisting in adjusting the books of account.
c. Consulting on accounting, tax, and similar matters.
d. Preparing tax returns.
e. Providing various manual or automated bookkeeping or data processing services unless the output is in the form of financial statements.
f. Processing financial data for clients of other accounting firms.
1. Statements on auditing standards provide guidance to the accountant who performs services in connection with the unaudited financial statements of a public entity.
Copyright © 1979 by the
American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N.Y. 10036
Statement on Standards for Accounting and Review Services
Issued by the Accounting and Review Sen/ices Committee
American Institute of Certified Public Accountants