[Anonymous]

Hi friends,

I am not sure if I am missing something/linkage here, but I cannot understand the purpose of a Compilation engagement.

Why does the management have to hire an accountant/CPA to just collect their F/S together when the management can prepare their own F/S? It’s like when you can do your own homework, but needed someone else to just print them out and staple them for you? It does not make any sense to me.

I may look really stupid by asking questions like this. I can never get it. Please help if you can! Thanks much!

[ymmit]

CPA's are expected to be experts at US GAAP required footnote disclosures and presentation. Management usually wont know any of this. Let's say a construction company needs a comp, how will their management know what is required in the footnotes?

Licensed CPA!

[Anonymous]

@ ymmit:

I completely agree with you. That is a valid point to understand compilation engagement. Thanks a lot!

[Anonymous]

@ ymmit:

I completely agree with you. That is a valid point to understand compilation engagement. Thanks a lot!

[Author]

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