Question

Do you think a compilation of financial statements is (or it is not) identified as an attest-service?
Explain and give at least 2 examples of attestation and non-attestation service!

Answer 1

Compilation of financial statements is an attest-service. The third type of attestation service a CPA may provide is a compilation. In a compilation, the CPA complies with the books and records of a client without any performance of the substantive procedure, verification or confirmation of balances.   Attestation services are when a certified public accountant expresses a conclusion about the reliability of company's financial statements. However private companies may undertake activities in which the other party may require some level attestation services. There are three types of attestation services: Compilation, Review, Audit.   Nonattest services are services provided to a client that is not specifically related to the performance of an attest engagement. For example, non attest service includes activities such as financial statement preparation, cash to accrual conversions, reconciliation, and tax return preparation.