The biggest question when determining what level of service you need regarding financial statements is, “who are the users of the financial statements and what is the purpose?”
Notice to Readers = No assurance
Review Engagement = Negative Assurance
Audit Opinion = Audit opinion
When it comes to compilation engagements, also known as Notice to Readers, we take a value added approach and go beyond the minimum to ensure that there is quality control in the preparation of the financial statements. We will ensure diligence, to minimize any material errors that could have arisen due to the accounting system.
We start off by understanding your specific needs of why the 3rd party is requesting the compilation, and then we prepare the financial statements in a manner best suited to the usability of the requestor. We may ask for copies of your General Ledger and Trial Balance. We also review your COA (Chart of Accounts) to determine whether the accounts are labelled or named correctly. (The appropriate expenses should be recorded in the appropriate accounts in which they belong.)
Finally, we will record adjusting entries to correct any errors or omissions from the Notice to Readers. When this is finalized, they can also be used to input the accounts into the T2 Corporate Tax Return.
Currently we do not provide review engagements or audits, but would be happy to refer you to a few firms in the Greater Toronto Area who we have worked with over the years.
Potential Users of the Financial Statements:
– Banks (Issuance of Loans)
– Purchasers of a Business
– Government & Regulatory
– Review Inspection