ACCOUNTANT REPORTS ON FINANCIAL STATEMENTS

Listed below are the reports Chartered Accountants will include along with the financial statements.  As my services are provided to owner operated businesses, where the owner has a hand-on understanding of the busness, I have limited my services to compilations as they are they provide the greatest value for those clients.

Compilation – “Notice To Reader”  

For this type of report, the CA takes the accounting records and uses the information provided by the company to prepare the financial statements. The CA will not have audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. It is not necessary to adhere to Canadian generally accepted accounting principles. These statements are adequate for internal purposes and for tax filings. However, as there is no assurance associated with them they are generally not acceptable to any outside parties such as the banks.

Review

This type of report is useful when a company doesn’t need audited financial statements but management or third parties (banks, granting agencies, etc.) want some assurance that the financial statements are plausible.  These financial statements will be prepared in accordance with Canadian generally accepted standards.  A review will consist primarily of enquiry, analytical procedures and discussion.

Audit

This report is the most involved and provides the greatest level of assurance. The CA expresses an opinion as to whether the financial position and the results of operations have been fairly presented and are in accordance with Canadian generally accepted accounting principles.  An audit of financial statements by an independent expert may be required for various reasons.  Incorporated businesses are legally required to present annual audited financial statements to shareholders.  The law allows smaller companies to waive an audit provided certain conditions are met.  A company’s banker may require an audit to support an application for financing. 

Property of Marino Vereecke Professional Corporation, CA