THE GENERAL STANDARDS TO WHICH THE ACCOUNTANTS MUST COMPLY ARE SET FORTH IN RULE 201 OF THE RULES OF CONDUCT OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' CODE OF PROFESSIONAL ETHICS. THIS STATEMENT WILL BE EFFECTIVE FOR COMPILATIONS AND REVIEWS OF FINANCIAL STATEMENTS FOR PERIODS ENDING ON OR AFTER JULY JULY 1, 1979. DEFINITIONS ARE PROVIDED FOR A 'NON PUBLIC ENTITY,' 'FINANCIAL STATEMENT,' 'COMPILATION OF FINANCIAL STATEMENTS,' AND 'REVIEW OF FINANCIAL STATEMENTS.' THE GENERAL DISCUSSION CONSIDERS THE ACCOUNTANT'S REPORTING OBLIGATION AND THE ACCOUNTANT'S UNDERSTANDING OF THE ENTITY. THE SECTION ON COMILATION OF FINANCIAL STATEMENTS EXAMINES REPORTING ON THE FINANCIAL STATEMENTS, REPORTING ON FINANCIAL STATEMENTS THAT OMIT ALL DISCLOSURES, AND REPORTING WHEN THE ACCOUNTANT IS NOT INDEPENDENT. ALSO DISCUSSED ARE THE REVIEW OF FINANCIAL STATEMENTS, DEPARTURES FROM GENERALLY ACCEPTED ACCOUNTING PRINCPLES, SUBSEQUENT DISCOVERY OF FACTS EXISTING AT DATE OF REPORT, THE HANDLING OF SUPPLEMENTARY INFORMATION, CHANGE IN ENGAGEMENT FROM AUDIT TO REVIEW OR COMPILATION, AND COMPARATIVE FINANCIAL STATEMENTS. THE APPENDIXES CONTAIN ILLUSTRATIVE INQUIRIES FOR A REVIEW OF FINANCIAL STATEMENTS, ILLUSTRATIVE ENGAGEMENT LETTERS FOR THE COMPILATION AND REVIEW OF FINANCIAL STATEMENTS, AN ILLUSTRATIVE REPRESENTATION LETTER FOR A REVIEW OF FINANCIAL STATEMENTS, AND RULE 201 OF THE CODE OF PROFESSIONAL ETHICS. FOOTNOTES AND TABULAR DATE ARE INCLUDED. (RCB)