Auditing - What are Compilations

The video explains compilation services provided by auditors, which involve assembling financial statements without assurance. It contrasts compilations with audits and reviews, highlighting that auditors do not perform test work. Clients who struggle to prepare their own financial statements may seek compilations. While some organizations may not accept compiled statements, they can be used for loan applications at small local banks.

Who might seek a compilation service and why?

In what situations might a client submit a compiled financial statement?