Updated: Aug 23, 2022
So you need a Compilation Report? That's great news! It means you're moving up the ladder and going after more or bigger projects! I'll spare you the technical jargon and just go over what to expect from a Compilation. The Compilation Report is typically the lowest level of reporting you can get by with your surety.
Typically, a Compilation starts off with the CPA obtaining your trial balance. From there, your CPA will put together or "Compile" the trial balance into financial statement form, ex. balance sheet, income statement, etc. Now most small to midsize firms don't stop there. Although standards don't require performing inquiries or analysis unless something just looks way off, most CPAs do anyways because they want to make sure the users are basing their decisions off of good data.
A solid effort will be placed on building a WIP schedule and adjusting any related balances including AR or AP if deemed necessary. The overall effort of a Compilation takes the least amount of time out of all of the engagement types.
This process should take around 30 hours or so to complete, if there are numerous adjustments. The nature of these adjustments are generally agreed upon prior to the start of the Compilation engagement.
You may also have the option to exclude the financial statement footnotes and cash flow statement as well, which requires even less work from your CPA, so double check to see if you can!