What is the purpose of compiled financial statements?

By CPABC
Last Revision: 6/30/2016
The basic premise behind a compilation engagement is that some clients, typically owner-managed businesses, and other users of financial information do not need financial statements containing all of the disclosures required for general purpose use. In addition, these users do not require the assurance from an audit or review engagement. Normally, these users would have the ability to obtain further information about the entity if required.