What it is
A compilation under AR-C 80 gives no assurance: the accountant assists management in presenting financial information as financial statements. The accountant’s report states what was and was not done. This file has a standard report shell and variants for statements that omit disclosures and for an accountant who is not independent.
A management advisory letter is not required in a compilation, and a compilation does not include procedures to identify control deficiencies. The advisory letter shell is for firms that choose to share observations; it should say clearly that it is not an opinion on controls.
When to use it
- Issuing a compilation report for a small private entity.
- When the client omits substantially all disclosures, or the firm is not independent.
- When you want to send observations to management alongside the compiled statements.
What’s inside
- Standard compilation report shell with every required element as a placeholder
- Variants: omitted disclosures, lack of independence, special purpose framework
- Drafting notes on dating, signature and page labeling
- Management advisory letter shell with observations, recommendations and a no-assurance disclaimer
Standard cited
This template follows AR-C 80 (SSARS). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Does the accountant have to be independent for a compilation?
No. Independence is not required for a compilation. If the accountant is not independent, the report must say so in a separate final paragraph. Giving the reasons is optional, but if you give any reason you must give all of them.
Can the statements omit disclosures?
AR-C 80 permits a compilation that omits substantially all the disclosures required by the framework, provided the omission is not, to the accountant’s knowledge, undertaken with the intent to mislead users. The report must say so.
Is a compilation the same as a preparation engagement?
No. A preparation engagement under AR-C 70 results in no compilation report and no assurance, and the accountant follows AR-C 70 for its own documentation and legend requirements. A compilation under AR-C 80 results in a compilation report and requires an engagement letter.
Related templates
- Compilation Engagement Letter (AR-C 80)
- Compilation Engagement Checklist (AR-C 80)
- Preparation Engagement Letter (AR-C 70)
Last updated 11/04/2026. All free templates.