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Question: Prepare a Compilation Report. The Coffin brothers have engaged you to compile their financial schedules from books and records maintained by James Coffin. The brothers own and operate three auto parts stores in Central City. Even though their business is growing, they have not wanted to employ a full-time bookkeeper. James specifies that all he wants is a balance sheet, a statement of operations, and a statement of cash flows. He does not have time to write up footnotes to accompany the financial statements. James directed the physical count of inventory on June 30 and adjusted and closed the books on that date. You find that he actually is a good accountant, having taken some night courses at the community college. The accounts appear to have been maintained in conformity with generally accepted accounting principles. At least you have noticed no obvious errors.
Required: You are independent with respect to the Coffin brothers and their Coffin Auto Speed Shop business. Prepare a report on your compilation engagement.
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