SAS No. 35 Engagements to Compile Financial Information  


Issued by Auditing Standards Committee in Taiwan on 28 November, 2000.


The objective of a compilation engagement is for the accountant to use accounting expertise, as opposed to auditing expertise, to collect, classify and summarize financial information. The procedures employed are not designed and do not enable the accountant to express any assurance on the financial information. A compilation engagement would ordinarily include the preparation of financial statements (which may or may not be a complete set of financial statements) but may also include the collection, classification and summarization of other financial information.       

In all circumstances when an accountant’s name is associated with financial information compiled by the accountant, the accountant should issue a report.

Independence is not a requirement for a compilation engagement. However, where the accountant is not independent, a statement to that effect would be made in the accountant’s report.

The accountant should ensure that there is a clear understanding between the client and the accountant regarding the terms of the engagement.

The accountant should plan the work so that an effective engagement will be performed.     

The accountant should document matters which are important in providing evidence that the engagement was carried out in accordance with this Statement and the terms of the engagement.

The accountant should obtain a general knowledge of the business and operations of the entity and should be familiar with the accounting principles and practices of the industry in which the entity operates and with the form and content of the financial information that is appropriate in the circumstances. To compile financial information, the accountant requires a general understanding of the nature of the entity’s business transactions, the form of its accounting records and the accounting basis on which the financial information is to be presented. The accountant ordinarily obtains knowledge of these matters through experience with the entity or inquiry of the entity’s personnel.

If the accountant becomes aware that information supplied by management is incorrect, incomplete, or otherwise unsatisfactory, the accountant should consider performing the following procedures and request management to provide additional information:

  • Make any inquiries of management to assess the reliability and completeness of the information provided;
  • Assess internal controls;
  • Verify any matters or verify any explanations.
If management refuses to provide additional information, the accountant should withdraw from the engagement, informing the entity of the reasons for the withdrawal.

The accountant should read the compiled information and consider whether it appears to be appropriate in form and free from obvious material misstatements. If the accountant becomes aware of material misstatements, the accountant should try to agree appropriate amendments with the entity. If such amendments are not made and the financial information is considered to be misleading, the accountant should withdraw from the engagement. 

The accountant should obtain an acknowledgment from management of its responsibility for the appropriate presentation of the financial information and of its approval of the financial information. 

The financial information compiled by the accountant should contain a reference such as “Compiled without Audit or Review” on each page of the financial information or on the front of the complete set of financial statements.

Effective date

This Statement is effective from 31 December, 2000.

  Address: 20th. F., No.17, Sec.1, Chengde Rd., Taipei, Taiwan Tel:886-2-2549-0549
Copyright(c) Accounting Research and Development Foundation in Taiwan