In the accounting world, the term “compilation” refers to formal financial statements prepared by a public accountant.
A compilation consists of financial statements and a cover letter stating that the accountant compiled the statements under a particular basis of accounting.
As opposed to audits or reviews, a compilation report does NOT give any assurances about the financials other than that they are being presented based on a particular method of accounting (such as tax basis or GAAP).
For more tax and accounting terms, visit the Glossary page on this website.
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