[Letterhead of Accounting Firm]
[Client Name and Address]
[City, State ZIP Code]
Compilation Report on the Financial Statements of [Client Name]
We have conducted a compilation engagement to compile the accompanying financial statements of [Client Name] as of [Balance Sheet Date], including the balance sheet, income statement, statement of changes in stockholders‘ equity, and statement of cash flows. These financial statements have been prepared following generally accepted accounting principles.
The responsibility for preparing and fairly presenting these financial statements lies with the management of [Client Name]. As the accounting firm engaged in the compilation, we are responsible for compiling these financial statements based on the information provided by management. Accordingly, we have not audited or reviewed the financial statements and do not express an opinion or any other assurance.
Our compilation followed the standards established by the American Institute of Certified Public Accountants. These standards require us to plan and perform the compilation to ensure the financial statements are free from material misstatement reasonably. However, our procedures are not designed to detect or prevent fraud or other irregularities. Nevertheless, we did perform certain analytical procedures on the financial statements and made inquiries of management regarding any known or suspected fraud affecting the company.
Based on our compilation procedures, we are unaware of any material modifications that should be made to the financial statements for them to follow generally accepted accounting principles.
We would like to emphasize that a compilation is less in scope than an audit or a review, and the objective is solely to assist in presenting the financial statements in the appropriate format. Consequently, this compilation report should not be used as a substitute for an audit or review conducted following generally accepted auditing standards.
[Accounting Firm Name]