TPL-COMP — Compilation (ISRS 4410)
The accountant helps the client prepare and present financial statements but expresses NO assurance. Useful for SMEs that need professionally-presented FS for internal use, banks, or specific stakeholders without the cost of an audit or review.
Compilation vs Audit vs Review
| Aspect | Compilation | Review | Audit |
|---|---|---|---|
| Assurance | None | Limited | Reasonable |
| Accountant's role | Help prepare + present | Inquire + analytical | Test substantively |
| FS authorship | Accountant prepares | Client prepares | Client prepares |
| Hours | 10-30 | 30-80 | 120-500 |
| Report wording | "Compilation report — no assurance" | "Nothing came to our attention" | "In our opinion, present fairly" |
Template metadata
| code | TPL-COMP |
| requires_workpapers | 0 |
| est_total_hours | 10-30 |
| typical duration | 1-3 weeks |
| deliverables | Compiled FS pack · Compilation report (with disclaimer) |
Step-by-step
Engagement letter
Explicit: no audit, no review, no assurance. Client provides data, accountant compiles. Distribution restriction (no third-party reliance without consent).
Get the data
TB, GL, supporting schedules. The accountant assumes the client's records are accurate (no testing). If the client wants verification, they need a review or audit.
Apply the framework
Map TB → IFRS-compliant FS lines, build SFP/SPL/SCF/SOCIE, draft notes. Same mechanics as audit but no procedures.
Discuss with client
Where management's accounting policy choices matter (depreciation method, inventory cost formula), document the choice and the basis (per ISRS 4410.30).
Issue compilation report
The wording is specific: "We have compiled the accompanying FS… on the basis of information provided by management… we have not audited or reviewed… and accordingly express no assurance…". Don't deviate from this template.
If during the compilation you find the client's records are misleading or incomplete, you can't just "compile what they gave you and walk away" — ISRS 4410.31 requires you to discuss with management + consider withdrawing if not corrected. Compilation is no-assurance, not no-responsibility.
Many SME clients have TPL-BK Bookkeeping monthly + TPL-COMP Compilation annually. The bookkeeping data feeds the compilation. Bundle the fee — easier sales conversation, sticky relationship.
The 4 seeded tasks
| # | Task | Phase | Days |
|---|---|---|---|
| 1 | Engagement letter · scope acceptance · independence + ethics declaration | Planning | 1-2 |
| 2 | Gather data (TB, GL, supporting schedules) · review for completeness | Fieldwork | 3-5 |
| 3 | Compile FS (SFP, SPL, SCF, SOCIE) · draft notes · accounting-policy memo | Reporting | 4-6 |
| 4 | Issue compilation report (ISRS 4410) · client sign-off · file archive | Reporting | 1-2 |
Worked example — small trading-LLC compilation
Client: Al Jazeera Trading LLC (50 employees, OMR 1.2M turnover)
Why compilation: bank requires "professional FS" for OD review.
Bank does not require audit/review.
Step 1 (Day 1) — Engagement letter signed; explicit no-assurance.
Step 2 (Day 3-5) — Pulled TB from Tally; got fixed-asset register,
inventory count sheet, lease schedule.
— Spotted: rent paid for Q1 2026 in Dec 2025;
discussed with client → reclass as prepayment.
Step 3 (Day 6-9) — Built IFRS-format SFP / SPL / SCF / SOCIE.
— Drafted 8 notes (basis, policies, depreciation,
leases, related parties, contingencies, subsequent
events, going-concern statement).
— Accounting policies memo: depreciation = SLM,
inventory = weighted-avg, IAS 16 + IAS 2 footnoted.
Step 4 (Day 10) — Issued compilation report with ISRS 4410 disclaimer.
PDF + signed copy to client + bank.
Total hours: 22h. Invoice: OMR 850 + 5% VAT.
What goes into the compilation report
Title + addressee
"Compilation report" addressed to "the management of [Client name]".
Identification of FS
"We have compiled the accompanying [SFP, SPL, SCF, SOCIE] of [Client] for the year ended [date]."
Basis of compilation
"…on the basis of information provided by management."
Disclaimer of assurance
"We have not audited or reviewed and accordingly do not express any assurance."
Independence statement (if relevant)
"We are not independent of [Client] because…" — required when accountant has a non-arms-length relationship.
Restriction on distribution
"This report is intended solely for [user]. It should not be distributed without our prior written consent."
Signature + date + place
Practitioner signature, date of report, Muscat.
Common pitfalls
If you become aware that compiled FS are misleading, raise with management. If unresolved, withdraw or modify the compilation report. Don't sign a misleading set of FS.
If you bookkeep + compile + advise tax all year, your independence position is different from a one-off compilation. Disclose this in the compilation report.
Banks sometimes treat compiled FS as "audited". The restricted-distribution paragraph + "no assurance" wording protect you from claims when the bank decision goes wrong.
Even compilations need PY comparatives for IAS 1 compliance. If PY was compiled by another firm, disclose that.
If the client's bank/regulator/board starts asking "is this audited?", or the entity is moving towards a tender that requires assurance, suggest stepping up to TPL-RE Review (ISRE 2400) — limited assurance, ~2-3× the fee, vastly more credible. Many compilations are gateway engagements.