Glossary
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Compiled Financial Statement
« Back to Glossary IndexCompiled financial statements, also known as notice-to-reader statements, are the least formal type of financial statement presentation. In a compilation engagement, an accountant assists in preparing the financial statements based on information provided by the company’s management without providing any assurance on the accuracy or completeness of the information. The accountant does not verify the accuracy of the data or perform any substantive procedures. Instead, they compile the financial information into a proper financial statement format. Notice-to-reader financial statements do not include any assurance or opinion regarding their accuracy or compliance with accounting standards. They are primarily used for internal management purposes or when stakeholders, such as small business owners or private companies, do not require assurance from an independent accountant.
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