The objective of compilations is to collect, summarize and classify financial information i.e. using accounting rather than auditing expertise into understandable form e.g. financial statements.
In a compilation engagement, the accountant is engaged to use accounting expertise as opposed to auditing expertise to collect, classify and summarize financial information. This ordinarily entails reducing detailed data to a manageable and understandable form without a requirement to test the assertions underlying that information. The procedures employed are not designed and do not enable the accountant to express any assurance on the financial information. However, users of the compiled financial information derive some benefit as a result of the accountant‘s involvement because the service has been performed with due professional skill and care.
