A compilation engagement turns the financial information you provide into a set of financial statements. Many owner-managed businesses use one for their corporate tax return, their bank or their own records. We prepare compilations under Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements.

What a Compilation Is

Compiled financial statements are prepared from information provided by management, with a clear note on how they were prepared.

We take the records and information management provides and compile them into financial statements. The statements include a note describing the basis of accounting applied, so readers understand how they were prepared. You receive a Compilation Engagement Report signed by a CPA.

What a compilation is not

  • It is not an audit or a review. We do not verify the accuracy or completeness of the information you provide.
  • It provides no assurance. The report states plainly that we express no opinion or conclusion on the financial statements.
  • It is not bookkeeping. Bookkeeping records transactions during the year; a compilation presents the year-end results. Many clients use both, and we treat them as separate services.
Service Image

Who it suits

Compilations suit smaller businesses and holding companies when no lender, funder or law requires a review or an audit. If a third party will rely on the statements for a significant decision, we will discuss whether a review engagement is more appropriate.

What you provide

  • Your accounting records or bookkeeping file for the year
  • Bank and credit card statements
  • Details of loans, assets bought or sold, and shareholder transactions
  • Answers to our year-end questionnaire

Frequently Asked Questions

Often, but not always. Check your loan agreement or ask your banker — we can help you interpret the requirement.

Canadian standards require that wording so that readers do not mistake compiled financial statements for reviewed or audited ones.

Not necessarily. A T2 return must include financial statement information, but the CRA does not require it to be compiled by a CPA. We can tell you what your situation calls for.