Walter Kunitake, CPA, has been asked by the management of Russell Company, a nonpublic real estate agency, to compile a set of financial statements as of the company’s year end, November 30, 19X4.

a. What is the purpose of a compilation?

b. If requested by the management of Russell Company, may Kunitake merely type or reproduce the financial statements without performing a compilation?

c. What effect would Kunitake’s lack of knowledge of the real estate agency business have on the engagement?

d. What knowledge of Russell Company should Kunitake acquire to compile the financial statements?

e. Draft the report Kunitake would issue if he was satisfied with the compiled financial statements.