Professional CPA-Led Compilation Engagement Vancouver
Your business may have accurate books and still need professionally compiled financial statements. A lender may request a “Notice to Reader”. A shareholder may need year-end financial information. Your business may need a consistent reporting format for its records and tax work.
At WYCPA, we provide compilation engagement Vancouver businesses can use for these and other financial reporting needs. We prepare compiled financial information under CSRS 4200, the current Canadian standard for compilation engagements, based on the information provided by management and the agreed-upon basis of accounting.
Compilation Engagements for Vancouver Businesses
A compilation engagement is appropriate when financial information needs to be assembled and presented in a formal financial reporting format, but the intended user does not require assurance. We work with your existing accounting records and help turn that information into financial statements prepared under the applicable compilation requirements.
Our compilation CPA services can include
- Preparing compiled financial statementsÂ
- Reviewing the accounting information provided by managementÂ
- Establishing the appropriate basis of accountingÂ
- Preparing relevant notes to the financial informationÂ
- Issuing the Compilation Engagement ReportÂ
- Working with your bookkeeper or internal accounting teamÂ
- Coordinating year-end financial reporting with corporate tax work where applicableÂ
We start by understanding why the statements are needed and who will use them. We ensure the engagement matches the actual requirement.
Still Being Asked for a “Notice to Reader”?
The terminology may be familiar, but the professional standard has changed. The former Section 9200 Notice to Reader framework was replaced by CSRS 4200, Compilation Engagements, for periods ending on or after December 14, 2021.
Current compilation engagements use a Compilation Engagement Report. So if your bank, lender or another third party still asks for a “Notice to Reader”, do not simply assume that the old report is what you need.
We can review the request with you and help clarify what type of financial information the intended user requires.
What Our Compilation Engagement Provides?
We do not audit the financial statements or perform the procedures required for a review engagement. Instead, our compilation accountant assists management in compiling financial information from the records and information it provides.
Management remains responsible for the financial information. The engagement also identifies the basis of accounting used to prepare the compiled financial information, giving users important context about how the figures have been presented.
If a lender needs assurance over your financial statements, a compilation may not meet its requirements. We can help establish the appropriate level of engagement before the work begins.
Which Service Do You Need: Bookkeeping, Compilation or Review?
Good bookkeeping gives you reliable financial records. It does not automatically give a lender or other third party the financial statements it has requested. The services are different:
|
Service |
What it does |
Assurance |
|---|---|---|
|
Bookkeeping |
Records and organises day-to-day financial transactions |
None |
|
Compilation engagement |
Assists management in preparing formal financial information under CSRS 4200 |
None |
|
Review engagement |
Performs inquiry, analytical and other procedures to provide limited assurance |
Limited |
|
Audit engagement |
Performs audit procedures and provides an independent audit opinion |
Reasonable |
In some circumstances, more than one form may be required. The correct filing depends on the property and transaction, not simply the fact that the seller is a non-resident.
We review those details before preparing the submission.
What to Do When Your Bank Asks for Financial Statements?
A financing request can create confusion when the terminology used by the lender is outdated or unclear. If your bank asks for a “Notice to Reader”, annual financial statements or another accountant-prepared report, we can help you establish what is actually required.
We can also coordinate with your lender or other professional advisers where appropriate. We prepare the financial information your business actually needs, at the appropriate level of reporting. We do not assume that every financing application requires the same engagement.
Our Compilation Engagement Process
We keep the process straightforward.
Understand the requirement
We establish the purpose of the financial statements and identify the intended users.
Review your records
We work with the accounting information and supporting records provided by management.
Establish the reporting basis
We determine the appropriate basis of accounting for the compiled financial information.
Prepare the financial information
We compile the statements and relevant notes in accordance with the applicable requirements.
Management review
You review the completed financial information and acknowledge responsibility for it.
Issue the report
We provide the Compilation Engagement Report with the compiled financial information.
Where we also handle your corporate tax work, we can coordinate the year-end accounting and T2 preparation as separate services.
Why Choose WYCPA for Compilation Engagement Services?
Year-end financial statements should make sense in the context of the business behind them. Our experience across accounting, bookkeeping, corporate tax and financial reporting allows us to look at the numbers as part of that wider picture. We work with business owners to keep the process practical while meeting the applicable professional requirements.
With more than 35 years of accounting experience, we provide CPA-led services to businesses in Richmond, Vancouver and Greater Vancouver.
If you have been told that you need a “Notice to Reader”, need financial statements for financing, or simply want to understand which reporting service is appropriate, we can help you determine the next step.
Need a Compilation Accountant in Vancouver?
Good financial reporting starts with knowing what the recipient actually needs. Call us to discuss your compilation engagement and financial reporting requirements.
FAQs
No, the former Notice to Reader framework was replaced by CSRS 4200 for periods ending on or after December 14, 2021. A current compilation engagement results in a Compilation Engagement Report. We can help clarify what it requires.
No, a compilation engagement provides no assurance. It is designed strictly to assist management in presenting their records in a formal reporting layout. If your business needs data verification for major credit facilities, you will require a Review Engagement or a full Audit.
Yes, you need a compilation engagement service provider if an external bank, shareholder, or the CRA requires formal, CPA-prepared financial statements for compliance. Your bookkeeper handles the day-to-day logging of business transactions, while a compilation CPA reviews that raw framework to construct professional year-end financial statements under current Canadian accounting standards.