What is the primary purpose of a compilation engagement?

The primary purpose of a compilation engagement is to prepare and present financial information in accordance with an applicable financial reporting framework. In a compilation engagement, an accountant assists management in presenting financial information in a structured format, typically in the form of financial statements, but does not provide any assurance regarding the reliability of that information.

This process involves gathering financial data from the client and organizing it without performing any audit or review procedures. The accountant's role is to ensure that the financial statements are appropriately formatted and consistent with the applicable financial reporting framework, such as GAAP or IFRS, but the accountant does not verify the accuracy or completeness of the information provided by the client.

The distinction between a compilation engagement and other types of engagements, such as audits or reviews, lies in the level of assurance provided. In a compilation, there is no assurance on the accuracy or reliability of the financial statements, which is why the focus is on presentation rather than verification or compliance. Therefore, this answer is the most accurate representation of the compilation engagement's purpose.