I’m starting to appreciate why understanding what you’re doing is more important than being right.
Compilations are easy to get right by accident when the client has a good bookkeeper. If that’s the case all you really have to do is input the trial balance and wait for the software to spit out financial statements. Then you fill out the GIFI and record the tax provision. That’s it.
But what’s the value in that? You won’t be able to explain the file to a manager or the client.
That’s why it’s important to understand what you’re doing. So you can effectively communicate what you’ve done and why you’ve done it that way. I think that’s valuable because few people fully understand what accountants do.
It seems like the UFE is trying to hit this home. Most indicators I’ve seen require you to “discuss” an issue to be considered competent. I’ve never seen something like “candidate chooses loan B” as a criteria for scoring competent.