Sample Compilation Letter
Independent Accountants' Compilation Report
Board of Director of Company XYZ
Management is responsible for the accompanying financial statements of Company XYZ, which comprise the balance sheet-income tax basis as of the years ended, December 31, 20X2, 20X1 and 20X0, and the related statements of revenue and expenses-income tax basis, for the years then ended in accordance with the income tax basis of accounting. We have performed compilation engagements in accordance with the Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.
The financial statements are prepared in accordance with the income tax basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America.
Management has elected to omit substantially all the disclosures ordinarily included in financial statements prepared in accordance with the income tax basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the users' conclusions about the company's assets, liabilities, equity, revenue, and expenses. Accordingly, the financial statements are not designed for those who are not informed about such matters.
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