|
| |
Financial
Accounting -
focuses on a business's past performance.
Compilation Engagement
 | I arrange the information received from the client, into the form of a
financial statement. I am concerned that
the assembly of information is arithmetically correct but do not attempt to
verify the accuracy or completeness of the information provided. I will not however knowingly be associated with false or misleading
information. |
| this type of engagement is appropriate when the client and other users do
not need financial statements containing all disclosures normally
required for general purpose use, nor do they need the assurance that can be
provided by an audit or review. |
| financial statements are appropriate for tax return preparation. |
Review Engagement
|
I prepare financial statements based on information
provided by the client plus discussion with the client/bookkeeper and a review
of the accounting records. The limited objective is to assess whether
the information in the financial statements is realistic within the limits of
the review. |
|
the review provides a higher degree of assurance of accuracy
and completeness then a compilation engagement but less than an audit |
|
financial statements are appropriate for general purpose use,
where an audit is not a requirement. |
.gif) |
