Financial Statements
Year-end financial statements at the level of assurance your lenders, investors, board or the CRA need, and no more than you need.
Who it’s for
Owner-managed businesses, holding companies, professional corporations and not-for-profit organizations that need year-end financial statements, whether for their tax filings, their bank, their shareholders or their members.
Three levels of engagement
Not every set of financial statements needs an audit. The right level depends on who will rely on the statements and what they require. We’ll help you choose the one that fits, which often means a less costly engagement than you expect.
Compilation
Formerly “Notice to Reader” · CSRS 4200
- Financial statements prepared from the information you provide
- No assurance: we don’t audit or review the figures
- Ideal for tax filing and owner use
- Often accepted by banks for smaller loans
Review
Review engagement / CSRE 2400
- Inquiry and analytical procedures on your financial information
- Report states whether anything suggests the statements are materially misstated
- Commonly required by lenders and some funders
- Less time and cost than an audit
Audit
Canadian Auditing Standards
- The highest level of assurance on financial statements
- Testing of balances, transactions and internal controls
- Required by some lenders, grantors, shareholder agreements and statutes
- An independent opinion on whether the statements are presented fairly
Statements are typically prepared under Accounting Standards for Private Enterprises (ASPE) or, for not-for-profits, Accounting Standards for Not-for-Profit Organizations (ASNPO).
How it works
- Scope and engagement letter. We confirm the level of engagement, who will use the statements, your year-end and the timeline.
- Your records. You provide your bookkeeping file or records, bank and loan statements, and supporting details for year-end balances.
- Preparation and procedures. We prepare the statements and carry out the work the engagement requires, following up with questions as they come up.
- Review with you. We walk you through the results, adjusting entries and anything worth your attention before the statements are finalized.
- Tax filing. Where we also prepare your corporate tax return, it’s completed alongside the statements.
Common questions
Which level of engagement do I need?
Start with who will rely on the statements. If they’re mainly for you and your tax return, a compilation is usually enough. If a bank, investor, funder or agreement requires a review or audit, the level is often written into your loan agreement, funding agreement or bylaws. We’ll help you check.
My bank is asking for reviewed statements. Can you help?
Yes. A review engagement gives your lender limited assurance on your financial statements. We can also talk with you about whether your lender would accept a compilation instead, which can save time and cost.
Can you also do my bookkeeping?
Yes, we can help with bookkeeping and year-end clean-up so your records are ready for your financial statements and tax filings.
How long does it take?
It depends on the engagement and on how complete your records are. Compilations are usually the quickest; reviews and audits take longer. We’ll agree on a timeline up front so you can meet your lender’s and the CRA’s deadlines.
Let’s talk about your situation
Call or email to arrange an initial conversation. We work with clients across Ontario.