Required information Compilations of Historical Financial Statements Read the case and answer the questions that follow Many clients request that CPAs perform a compilation rather than a review or an audit. Compilations provide no explicit assurance that the information is fairly presented and independence is not required. CONCEPT REVIEW: Traditionaly, a compilation is performed to assist management in presenting financial information in financial statement format. Accountants must understand accounting principles and practices used and have a good understanding of the client's business transactions and records 1. Each 2. An engagement letter needs to be signed by 3. Compilations can omit substantially all 4. An engagement letter documents the 5. At a minimum, the accountants must of the compiled financial statements should be marked "see accountant's compilation report. page of the terms of the engagement with the client. the financial statements