If compiled financial statements presented in conformity with the cash receipts and disbursements basis of accounting do not disclose the basis of accounting used, the accountant should
Disclose the basis of accounting in the accountant’s report.
An accountant may compile financial statements that omit disclosures required by GAAP or a special purpose framework (other comprehensive basis of accounting, or OCBOA). The accountant may compile financial statements that omit substantially all the disclosures required by an applicable reporting framework if the omission is not, to his/her knowledge, done to mislead those who might reasonably be expected to use the statements. When reporting on statements that omit substantially all disclosures, the accountant should include in the compilation report a paragraph stating that (1) management has elected to omit substantially all the disclosures, (2) the omitted disclosures might influence the user’s conclusions, and (3) the statements are not designed for those who are not informed about such matters. Furthermore, statements prepared in accordance with an OCBOA are not appropriate in form unless they include (1) a description of the OCBOA, including a summary of significant accounting policies and a description of the primary differences from GAAP, and (2) informative disclosures similar to those required by GAAP.