What Is a CPA Compiled Financial Statement?

Financial statements are generally compiled using generally accepted accounting principles, also known as GAAP. A compiled financial statement is a specific name that relates to the financial statement having been reviewed or audited by an outside accountant.

Difference Between Compiled and Certified Financial Statements

A certified financial statement has been reviewed and certified as accurate by an outside accountant. A compiled financial statement has not been reviewed or certified by a third party. Companies often release compiled financial statements when timeliness of the financial information is of utmost importance, since having a financial statement certified can take some time.

Components of a Financial Statement

A compiled financial statement will included a balance sheet, cash flow statement and income statement. The income statement reports the companies revenue or sales and expenses.

Timing

Financial statements are usually compiled on a quarterly and annual basis. Some jurisdictions actually require that financial statements be compiled on a quarterly basis.

Distribution

Compiled financial statements are usually distributed to all investors outside of the management group. Financial statements can sometimes be found on corporate websites in an area specifically for investors. Publicly traded companies are required to submit their financial statements to the Securities and Exchange Commission (SEC) and they are available to the general public.

Review Process

Once a compiled financial statement has been reviewed, audited and certified, it then becomes a certified financial statement. Most corporations will use a certified public accountant who specializes and is licensed (where required) to audit and certify financial statements.