Finance Questions? Ask a Financial Expert for Answers ASAP
Here's something that I pulled some years ago from a group of Word templates ... tell me what you think:
We have compiled, from information you provide, the [monthly, quarterly, or other
frequency] financial statements of XYZ Company as of and for the year ended
December 31, 20XX.
The objective of a compilation is to assist you in presenting financial infor-
mation in the form of financial statements. We have utilized information that is
your representation without undertaking to obtain or provide any assurance
that there are no material modifications that should be made to the financial
statements in order for the statements to be in conformity with [the applica-
ble financial reporting framework (for example, accounting principles generally
accepted in the United States of America)].
You are responsible for
a. the preparation and fair presentation of the financial statements
in accordance with [the applicable financial reporting frame-
work (for example, accounting principles generally accepted in the
United States of America)].
b. designing, implementing, and maintaining internal control rel-
evant to the preparation and fair presentation of the financial
c. preventing and detecting fraud.
d. identifying and ensuring that the entity complies with the laws
and regulations applicable to its activities.
e. making all financial records and related information available to
We are responsible for conducting these statements in accordance with State-
ments on Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.
This compilation differs significantly from a review or an audit of financial state-
ments. A compilation does not contemplate performing inquiry, analytical pro-
cedures, or other procedures performed in a review. Additionally, a compilation
does not contemplate obtaining an understanding of the entity's internal con-
trol; assessing fraud risk; testing accounting records by obtaining sufficient
appropriate audit evidence through inspection, observation, confirmation, or
the examination of source documents (for example, cancelled checks or bank
images); or other procedures ordinarily performed in an audit. Accordingly, we
will not express an opinion or provide any assurance regarding the financial
statements being compiled.
These statements cannot be relied upon to disclose errors, fraud, or illegal acts.
[Signature of accountant]
These, may also prove useful: http://www.gobookee.net/cover-letter-sample-financial-analyst-reporting/
And finally, here's an article woth some other good guidelines .. but I believe th template here, (above) should serve your purposes here
I still don't see you coming into the chat, so I'll move us to the Questions and Answer mode ... Maybe that will help (We can still continue a dialogue there, just not in real-time as here)
Let meknow if you have questions
It that the correct verbage for the conformity.....the financial reporting framework.....do I use what you said?
Ok...so I do not have to say the financial statements conform to any accounting prinicples.
We just prepared it with the information provided by the client. It is not a formal Compilation and I do not want to seem like we put alot of our own effort into it. Does that make sense?