At the conclusion of a compilation engagement, _______.
A)the auditor provides a verbal report to management only
B)the auditor attests to the accuracy and fairness of the financial statements
C)the CPA provides a written compilation report to the client
D)the auditor uses the compilation report to assist the client in raising funds in capital markets

Question

Quizplus · Accepted Answer

At the conclusion of a compilation engagement, the CPA provides a written compilation report to the client. The compilation report provides no assurance on the financial statements and does not attest to their accuracy or fairness. The report simply states that the financial statements are the representation of management and that the CPA has compiled the statements in accordance with applicable professional standards. The report is intended for the use of the client and is not meant to be used as part of a fundraising effort in capital markets.

At the Conclusion of a Compilation Engagement, _______