With a compilation, the CPA prepares the financial statements based on information provided. Which statement is true?

• A. The CPA provides assurance that statements conform to GAAP.
• B. The CPA performs an audit.
• C. The CPA can make claims about accuracy and completeness.
• D. The CPA cannot make any claims about the accuracy and completeness of the financial statements.

Answer: (D)

In a compilation, the CPA’s role is to assemble financial statements from information provided by management, without testing or verifying the numbers. Because no procedures are performed to assess accuracy, completeness, or GAAP conformity, the CPA does not provide any assurance about the statements. That’s why they cannot make claims about the accuracy and completeness of the financial statements—the engagement does not establish or imply such assurance.

The other statements imply some level of assurance or verification (indicating an audit, or claims about accuracy/completeness), which does not apply to a compilation.