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"Assisting clients with preparing fabulous financial statements."


    A compilation refers to a company's financial statements that have been prepared or compiled by an outside accountant.

    A compilation is usually part of an accounting firm's write-up service. With compilations, or compiled financial statements, the outside accountant converts the client's data into financial statements without providing any assurances or auditing services.

    A compilation report should accompany the compiled financial statements to indicate that the financial statements:

    • are the representation of the company's management, and
    • have not been reviewed or audited and therefore the accountant does not offer an opinion or any assurances on the financial statements.

    Compilations allow companies without an accountant to have financial statements prepared by an outside professional without the higher cost of reviewed or audited financial statements.

    Example of a compilation: A company prepares its own monthly financial statements by using popular accounting software. However, as part of the company's loan agreement with its bank, the company must provide the bank with annual financial statements that have been compiled by a Business Accountant in Practice (SA).

    Opportunities for business accountants

    The International Standard on Related Services (ISRS™ 4410) (Revised), Compilation Engagements, is the standard as prescribed by SAIBA when a BAP(SA) compiles financial statements for clients.

    ISRS™ 4410 is issued by the International Auditing and Assurance Standards Board (IAASB) but prescribed by SAIBA for when a BAP(SA) compiles financial statements for any of the following entities:

    • Sole-proprietor
    • Partnership
    • Close corporation
    • Company
    • Trust
    • Body corporate
    • etc.

    What SAIBA needs to do

    SAIBA is a legislative controlling body for accountants, accounting officers and independent reviewers. As a controlling body we are required to monitor and sanction compliance to standards of member conduct. We perform this function by ensuring compliance by our members to the IAASB’s engagement standards. We offer CPD and training courses to help guide members with their everyday challenge in the workplace. We lobby government and SME associations to allocate work to business accountants.

    What you need to do

    The firm should apply ISRS™ 4410 and ensure that all compilation engagements are performed in terms of this standard. The firm should study any relevant laws, regulations, founding documents or contract terms to determine the qualifications of the persons required to perform the engagement, prior to performing the engagement.

    Members are required to register with www.saiba.academy and read www.accountingweekly.com to stay updated and do a specialist license to unlock additional advisory work.

    In summary you can:

    1. Do a google search to identify the types of companies that are likely to need this particular service.
    2. Write an email or letter to them and explain how you can help them.
    3. Do the SAIBA CPD and relevant license related to the particular service.
    4. Perform the service for your new client.
    5. Alternatively contact a SAIBA Strategic Alliance partner.

    Additional resources

    SAIBA has provided a number of guides, videos and PowerPoint slides that will assist accountants with understanding their responsibilities in terms the various types of engagements: