Document background
The Compilation Engagement Letter is a crucial document used when a business requires professional assistance in compiling its financial statements without the level of assurance provided by an audit or review engagement. This document, governed by Saudi Arabian law and SOCPA regulations, establishes the professional relationship between an accounting firm and its client for compilation services. It clearly delineates the scope of services, emphasizing that the accountant will assist in preparing financial statements without providing assurance on their accuracy or completeness. The letter includes specific provisions required under Saudi law, details about deliverables, timelines, and fee structures, while ensuring compliance with local professional standards and regulatory requirements. The Compilation Engagement Letter serves as a protective mechanism for both parties by clearly establishing expectations and responsibilities.
