What is the purpose of a financial records compilation?

The purpose of a financial records compilation is to reorganize and reformat information without providing an evaluation. In a compilation, the accountant assembles financial data provided by the community association management team into a structured format but does not conduct in-depth analysis or express an opinion on the accuracy or completeness of the information. This service is generally less extensive than an audit or a review, making it a more accessible option for organizations looking to present their financial status without the heightened scrutiny involved in other types of financial statements.

By focusing on reorganizing the data, a compilation provides stakeholders with a coherent summary that can help them understand the financial position of the association, while not offering assurance regarding the reliability of the data. This makes it an appropriate choice for associations that need to present their financials transparently without incurring the costs associated with a full audit or detailed review.