Compilation Certificate and Report Templates (Updated)

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Recently, Board of Accountancy (BOA) issued Resolution No. 03, Series of 2016, requiring the attachment to the annual financial statement (FS) of a Certificate on the compilation services for the preparation of FS and notes to the FS. The Certificate shall be prepared only for issuers which/who have gross sales or revenues exceeding ten million pesos (P10,000,000) for a particular accounting year.  The compilation certificate is to be issued by a Certified Public Accountant, who is either accredited in Public Practice (for those which/who does not have accredited CPA employees) or Commerce and Industry (for those which/who have accredited CPA employees).

The proforma report was presented in the Annex A of the BOA Resolution No. 03, Series of 2016 (the Resolution).  For CPAs accredited in Commerce and Industry, it is clear that the format of the compilation report is in accordance with Annex A of the Resolution.

The issuance of the resolution seemingly require the practitioners (those in Public Practice) to issue a separate report and a separate certificate: (1) the compilation report required under the Philippine Standard on Related Services 4410 (Revised), Compilation Engagements; and (2) the Compilation Certificate required by the Resolution.

A discussion between BOA and Auditing and Assurance Standards Council (AASC), however, resulted to an agreement that the report issued by a practitioner to the management as a result of the completion of the compilation engagement can be used for purposes of complying with the requirements of the Resolution. As of date of writing, the BOA confirmed this but formal written confirmation is yet to be released.

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Following are the updated templates for the compilation report (Public Practice) and compilation certificate (Commerce and Industry) as required under BOA Resolution No. 03, Series of 2016:


PUBLIC PRACTICE

PRACTITIONER’S COMPILATION REPORT

To the Management
[Company Name]
[Address]

We have compiled the accompanying financial statements of [Company Name] based on information you have provided.  These financial statements comprise the statement of financial position of [Company Name] as at [Reporting Date], the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

We performed this compilation engagement in accordance with Philippine Standard on Related Services 4410 (Revised), Compilation Engagements.

We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of these financial statements in accordance with [Philippine Financial Reporting Standards (PFRS), PFRS for SMEs, or other applicable reporting framework].  We have complied with relevant ethical requirements, including principles of integrity, objectivity, professional competence and due care.

These financial statements and the accuracy and completeness of the information used to compile them are your responsibility.

Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements.  Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with [PFRS, PFRS for SMEs, or other applicable reporting framework].

[Practitioner]
[CPA Certificate]
[Accreditation]
[Tax Identification No.]
[PTR No.]

[Date]


COMMERCE AND INDUSTRY

CERTIFICATE ON THE COMPILATION SERVICES FOR THE PREPARATION OF THE
FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS

I hereby certify that I am the Certified Public Accountant (CPA) who performed the compilation services related to the preparation and presentation of financial information of an entity accordance with [Philippine Financial Reporting Standards (PFRS), PFRS for SMEs, or other applicable reporting framework] and reports as required by accounting and auditing standards for [Company Name] for the period ended [Reporting Date].

In discharging this responsibility, I hereby declare that I am the [Position] of the [Company Name].

Furthermore, in my compilation services for the preparation of the financial statements and notes to the financial statements, I was not assisted by or did not avail of the services of [Name of Auditor] [who/which] is the external auditor who rendered the audit opinion for the said financial statements and notes to the financial statements.

I hereby declare, under penalties of perjury and violation of Republic Act No. 9298, that my statements are true and correct.

[Practitioner]

[CPA Certificate No.]
[Valid Until]

[Accreditation No.]
[Valid Until]

NOTARY PUBLIC

Doc. No._______
Page No._______
Book No._______
Series of 201_____


The templates above should be custom-fit to the firm, organization and client reporting, including the financial reporting framework that the company applies. These templates are based on the most recent information available to the author as of date of writing and may change from time to time.

It is also important to note that the compilation report should be dated the same as the date of the approval of the financial statements by the management or those charged with governance.

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Disclaimer: Opinions expressed in this article are that of the author and information provided are for general conceptual guidance for public information and are not substitute for expert advice. Contact support@philcpa.org for more information and if you want to avail professional services. Find us on Facebook!



Orlando Calundan is a CPA who has exposures in FS audit of entities in various industries such as real estate, food/restaurants, manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements.

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