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: Comparison of Previous Illustrative Compilation Report and New Illustrative Report
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Previous Compilation Report |
New Compilation Report |
| Title |
Not required |
Accountant's Compilation Report |
| Addressee |
Not required |
[Appropriate Salutation] |
| Introductory paragraph |
I (we) have compiled the accompanying balance sheet of XYZ Company as of December 31, 20X1, and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. |
I (we) have compiled the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. I (we) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. |
| Paragraph outlining management's responsibilities |
None |
Management (owners) is (are) responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of financial statements. |
| Paragraph outlining the accountant's responsibilities |
None |
My (our) responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. |
| Conclusion paragraph |
A compilation is limited to presenting in the form of financial statements information that is the representation of management (owners). I (we) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. |
The communication is moved to the introductory paragraph. |
| Paragraph disclosing independence impairment |
I am (we are) not independent with respect to XYZ Company.
The accountant is precluded from disclosing the reasons for the independence impairment. |
I am (we are) not independent with respect to XYZ Company.
The accountant is not precluded from disclosing the reasons for the independence impairment. |
Comparison of Previous Illustrative Review Report
and New Illustrative Report
|
Previous Review Report |
New Review Report |
| Title |
Not required |
Independent Accountant's Review Report |
| Addressee |
Not required |
[Appropriate Salutation] |
| Introductory paragraph—in the new report, the scope of the engagement is described (it was included in the second paragraph of the previous review report). Management’s responsibilities are moved to a separate paragraph. |
I (We) have reviewed the accompanying balance sheet of XYZ Company as of December 31, 20X1, and the related statements of income, retained earnings, and cash flows for the year then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of management (owners) of XYZ Company. |
I (We) have reviewed the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. A review includes primarily applying analytical procedures to management’s (owners’) financial data and making inquiries of company management (owners). A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, I (we) do not express such an opinion. |
| Second paragraph–the new report describes management’s responsibilities. The scope of the engagement is included in the introductory paragraph. |
A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I (we) do not express such an opinion. |
Management (owners) is (are) responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. |
| Paragraph describing the accountant’s responsibilities |
None |
My (our) responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require me (us) to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. I (We) believe that the results of my (our) procedures provide a reasonable basis for our report. |
| Paragraph describing the results of the engagement |
Based on my (our) review, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. |
Based on my (our) review, I am (we are) not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. |
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