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The Compilation Engagement Letter serves as a crucial document in New Zealand's professional accounting services landscape, establishing the terms under which an accounting firm will compile financial information for a client. This document is typically used when a business requires assistance in preparing financial statements or other financial information but doesn't need an audit or review level of assurance. The letter must comply with New Zealand professional standards, particularly those set by the New Zealand Institute of Chartered Accountants, and relevant legislation such as the Financial Reporting Act 2013. A Compilation Engagement Letter explicitly outlines the nature and limitations of the service, clearly stating that no assurance will be provided and detailing both parties' responsibilities, thereby protecting both the accountant and the client by establishing clear expectations and deliverables.

1. Letterhead and Date: Professional firm's letterhead and current date

2. Client Address: Full business name and address of the client

3. Salutation: Formal greeting to the appropriate client representative

4. Purpose of Engagement: Clear statement that this is a compilation engagement and the specific financial information to be compiled

5. Scope of Services: Detailed description of what the compilation engagement will and will not include

6. Responsibilities: Clear outline of both accountant's and client's responsibilities during the engagement

7. Basis of Compilation: Statement about the accounting standards or framework to be used

8. Limitations: Clear statement that neither audit nor review will be performed

9. Professional Standards: Reference to relevant professional standards and compliance requirements

10. Fees and Payment Terms: Details of fee structure, billing arrangements and payment terms

11. Timing and Deadlines: Expected timeframes for delivery of services

12. Confidentiality: Commitment to maintain confidentiality of client information

13. Acceptance and Signature: Space for both parties to sign and date the engagement letter