Sample Compilation Report And Disclaimer
The following sample is typical of the Compilation Report and Disclaimer which will appear on the financial information we prepare.
COMPILATION REPORT to the directors/partners/trustees/proprietor of [Entity Name]
We have compiled these financial statements of [Entity Name] for the 12 months ended [Date Month Year] as set out on pages 1 to 10 from the information you provided. Our work was carried out to the professional standards promulgated by the New Zealand Institute of Chartered Accountants, in particular Service Engagement Standard No. 2: Compilation of Financial Information. The financial statements have been prepared, as you instructed, in accordance with the accounting policies agreed with you as described in Note 1 to the financial statements (the statement of accounting policies).
No assurance expressed
You directed us to use accounting expertise to compile the financial statements from information you provided. Your instructions did not include verification or validation of that information. No audit or review engagement has been performed and accordingly we express no assurance on the financial information.
You are solely responsible for the information contained in the financial statements and have determined that the accounting policies specified by management are appropriate for your intended uses of the financial statements. You are the only intended users of these financial statements.
The financial statements were prepared exclusively for your benefit. We do not accept responsibility to any other person for the contents of the financial statements.
Independence (if required)
We are not independent of [Entity Name] because [reason why not independent, for example, the accountant is a formal or de facto shareholder /director /partner /trustee /lender].
Disclaimer (if required)
A compilation engagement requires us to apply compilation procedures, in accordance with SES-2 Compilation of Financial Information, to compile the Financial Statements from information you provide to us. Those compilation procedures do not include the performance of an audit or review in respect of either the information you provide or the financial information compiled from it. Accordingly, neither I, nor any of my employees, accept any responsibility for the reliability, accuracy or completeness of the information from which the financial information has been compiled.
The financial information is prepared at your request and exclusively for your benefit. Neither I, nor any of my employees, accept any liability of any kind whatsoever, including liability by reason of negligence, to either yourself or any other person for losses incurred as a result of placing reliance on the compiled financial information.
Russell Turner Chartered Accountants