A compilation differs significantly from, and is substantially less in scope than, a review or audit of an organization’s financial statements. A compilation is one of the lowest level financial statement services an accountant can provide.
The objective of a compilation is to present information, in the form of financial statements, that’s the representation of management. A compilation requires significantly fewer procedures than either an audit or a review.
A compilation doesn’t include the expression of an opinion or any assurance on the financial statements, and an accountant need not be independent to perform a compilation engagement.