Compilation Report

Reporting standards in the SSARS apply to the compilations and reviews of the personal financial statements. In a compilation or review engagement, an accountant is required to issue a report whenever the compilation or review is complete; and this requirement is applicable to the personal financial statements of an individual, as specified by SSARS no. 1. However, if an engagement is not completed a report is unlikely to be issued.

Personal financial statements compiled by an accountant should be accompanied by a report stating that:

A compilation has been performed in reference to the SSARS (Statements for Accounting and Review Services) which is issued by the AICPA (American Institute of Certified Public Accountants).

The compilation is restricted to presenting in the type of a personal financial statements or statement information that is the representation of the individual.

The financial statements have not been reviewed or audited and accordingly, the accountant doesn’t express a view or any other types of assurance on them.

Any other procedures the accountant performs in connection with the engagement should not be mentioned in the report.

The compilation report is addressed to the individual whose financial statements are compiled and the date of the report is the date of the completion of the compilation procedures and also, each page of statement of financial condition (and the statement of changes in net worth, if presented) should include a reference “See Accountant’s Compilation Report”.

Reporting when the accountant is not independent: An accountant may issue a compilation report on the personal financial statements of an individual even though he or she is not independent with respect to that individual. In such cases, the accountant must modify the compilation report. The specific reason for the lack of independence, such as a family relationship, need not be discussed. The accountant should add an additional paragraph to the compilation report stating that “I am (we are) not independent with respect to (name of the individual).

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