A compilation report is typically used to indicate that financial statements appear to be appropriate in form and free from obvious material misstatements.  The CPA will obtain information from the client and present it in the form of a financial statement but there is no assurance provided.  The CPA providing the compilation is not required to be independent though disclosure of impairment of independence is required in the report when applicable.  Compilation of financial statements is usually performed when a high level of assurance isn't required, such as when lower amounts of financing or credit are sought or when significant collateral is in place.