Wasatch Front Compiled Financial Statements & CPA Compilation Services
Compiled financial statements present your company’s financial information in formal financial statement form and include a CPA’s compilation report. A compilation doesn’t provide assurance, because the CPA doesn’t audit, review, or verify the information management supplies.
Lenders, franchisors, and licensing boards don’t always make it clear which type of financial statement they need. Before we start, we’ll review the request with you and make sure a compilation actually satisfies the requirement.
When You Need a Compilation
A compilation may be appropriate when someone needs professionally presented financial statements with a CPA’s report but doesn’t require assurance.
You may need compiled financial statements for:
- A lender or financing request
- A franchisor or franchise agreement
- An owner, partner, or internal management team
- A contractor license application or renewal
- A bonding company or surety that accepts compiled statements
- Routine reporting required by a contract or another third party
Check the written request carefully. If it requires reviewed or audited financial statements, a compilation won’t be enough.
Free 15-Minute Assessment
Not sure whether you need an audit, review, or compilation?
If the wording is unclear, send us the request and we’ll help you determine what is required.
Compiled vs. Prepared Financial Statements
Neither compiled nor prepared financial statements provide assurance, but they aren’t the same service. The difference is whether the CPA issues an accountant’s report.
| Feature | Compiled Financial Statements | Prepared Financial Statements |
|---|---|---|
| CPA report included | Yes. A compilation report accompanies the statements. | No accountant’s report is issued. |
| Assurance provided | No assurance | No assurance |
| CPA’s role | The CPA assists management with presenting the financial information and reads the statements to consider whether they appear appropriate in form and free from obvious material misstatements. | The CPA prepares the statements using information provided by management. |
| Testing or verification | No audit testing, balance verification, or analytical procedures | No audit testing, balance verification, or analytical procedures |
| Common use | A lender, licensing board, franchisor, or another third party requests financial statements with a CPA’s report. | Management needs professionally prepared financial statements without a CPA’s report. |
If a request says only “CPA-prepared financial statements,” ask whether the recipient expects a compilation report or will accept prepared statements.
When assurance is required, reviewed financial statements or financial audit services may be more appropriate.
Learn how the services differ in our guide to audit vs. review vs. compilation, or explore our complete audit and assurance services
What a CMP Compilation Includes
We perform compilation and preparation engagements under the applicable AICPA Statements on Standards for Accounting and Review Services. We keep the engagement focused on the statements and report you actually need.
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Confirm the Requirement
We identify who needs the statements, the period they must cover, the applicable reporting framework, and the deadline.
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Provide a Fee Estimate and Engagement Letter
We prepare a fee estimate based on the scope of the engagement, then draft and provide an engagement letter for your review and signature before work begins.
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Gather the Financial Information
Your team provides the trial balance, general ledger, supporting schedules, and other information needed to prepare the statements.
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Prepare and Read the Statements
We use the information management provides to compile the statements. We also read them to consider whether they appear appropriate in form and free from obvious material misstatements.
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Issue the Statements and Report
We provide the completed financial statements with the compilation report attached.
Management remains responsible for the financial information, the accounting records behind it, and the final statements. Our work doesn’t include transaction verification, balance confirmations, internal control testing, or an opinion on the financial statements.
Contractor Licensing and Construction
Contractor financial statement requirements often depend on the state, license class, and requested monetary or bid limit. A compilation may satisfy some applications, while higher classifications may require reviewed or audited financial statements.
Idaho Public Works Contractors
In Idaho, Class CC and B applicants must submit a compiled financial statement prepared by a CPA or licensed public accountant, along with the accountant’s report. Classes A, AA, AAA, and Unlimited require reviewed or audited statements.
The Idaho Public Works Contractor Licensing fact sheet explains the financial statement, timing, and financial requirements for each license class.
Nevada Contractors
Nevada’s financial statement requirements vary according to the monetary limit requested. Compiled statements may be accepted for certain limits, while statements with full disclosures or a review or audit may be required at higher limits.
The Nevada State Contractors Board license requirements explain the applicable financial statement levels and recency requirements. That page opens on the Bond tab by default, so select the Financial tab to see the financial statement requirements.
Licensing rules change. Go by your current application or renewal instructions. Send us the relevant documents, and we’ll help you identify the service required for your license class and deadline.
Why Choose CMP?
We’ll give your accounting team a clear list of what we need up front and raise questions as they come up, rather than waiting until the end of the engagement. That helps keep the financial statements moving toward the deadline.
You’ll work directly with experienced assurance professionals who understand the reporting needs of privately held companies and contractors. CMP has been serving clients for nearly 50 years, and we don’t make the process more complicated than it needs to be.
From our offices in Logan, Layton, and St. George, we work with businesses throughout Utah, the Mountain West, and nationwide. Secure document sharing and remote meetings keep the engagement moving when your team isn’t near one of our offices.
Meet Our Financial Statement Compilation Team
Dustin and Tara lead financial statement engagements and work directly with clients and their accounting teams.
Dustin is an Audit Partner in our Logan office and has been with CMP since 2005. He specializes in compilations, reviews, and audits of financial statements. He serves clients in agriculture, banking, construction, manufacturing, trucking and transportation, employee benefit plans, and captive insurance.
Tara is an Assurance Partner in our Logan office and has been with CMP since 2010. She specializes in compilations, reviews, and audits of financial statements. She serves clients in agriculture, banking, construction, manufacturing, trucking and transportation, employee benefit plans, and captive insurance.
Frequently Asked Questions About Financial Statement Compilations
What Are Compiled Financial Statements?
Compiled financial statements are financial statements presented with a CPA’s compilation report. The report states that the CPA didn’t audit or review the information and doesn’t provide an opinion, conclusion, or assurance.
What Is the Difference Between a Compilation and a Preparation?
A compilation includes an accountant’s report. A preparation engagement doesn’t. Neither service includes testing or provides assurance.
Who Can Prepare Compiled Financial Statements?
A licensed CPA can perform a compilation under the applicable professional standards. A formal compilation report must be issued by a CPA or another properly licensed accountant where permitted.
Do Compiled Financial Statements Provide Any Assurance?
No. The CPA doesn’t perform audit testing or the inquiry and analytical procedures used in a review. The compilation report clearly explains this limitation.
Can Compiled Financial Statements Be Used for Contractor Licensing?
Yes, when the licensing authority accepts a compilation for the applicable license class or monetary limit. Requirements vary by state and license type, so check the current application instructions before selecting the engagement.
How Much Does a Financial Statement Compilation Cost?
Compilation fees vary based on the reporting period, the applicable reporting framework and basis of accounting, the condition of your accounting records, the complexity of your company, and the statements or disclosures required. Because pricing depends so much on the specifics of each engagement, we provide a fee estimate and engagement letter after reviewing your written request and learning more about your business.
Need Compiled Financial Statements?
If you’ve been asked for compiled financial statements, send us the request and your deadline. We’ll review the requirements, tell you what records we’ll need, and explain the next steps.
Ready When You Are
Talk directly with a CMP CPA about your audit, review, or compilation requirement.
