We can prepare financial statements for your business on either of 3 basis, as follows:
Notice to Reader
Notice to reader financial statements are prepared by us on your behalf. The final statements come with an affixed report from our firm signed by us. Our mandate in such engagements is to compile the financial statements according to the prescribed standards governing notice to reader financial statements as set forth by the Canadian Institute of Chartered Accountants. The standards require us conclude as to whether the financial statements are false or misleading. Notice to reader financial statements do not have to be prepared in accordance with Generally Accepted Accounting Principles and are the simplest and cheapest to prepare. We are not required to perform inquiry, analysis or discussion with management nor are we required to verify or audit information provided by our client. Notice to reader financial statements are accepted by the government, many banks and lenders and other users as usable and informative financial information about an entity.
In certain circumstances, a review engagement financial statement is appropriate. For example, for certain loans, a bank or other lender may require the borrower to have reviewed financials statements. Reviewed financial statements are more involved than notice to reader financial statements and must be prepared in accordance with Generally Accepted Accounting Principles (GAAP). Such statements often include involved notes and are more time consuming to prepare. Reviewed financial statements come affixed with a review report signed by us which concludes that nothing has come to our attention that has caused us to believe the statements are not in accordance with GAAP. In conducting review engagements the procedures of inquiry, analytical procedures and discussion are employed. Information is not generally verified or audited, however. Review engagements provide a level of assurance to users/readers and are better sources of information in certain circumstances than notice to reader financial statements.
Audited financial statements are the most complex level of engagement respecting financial statements. Audits are the most expensive and the most involved of the 3 types of financial statement engagements. In an audit, we conduct our work according the Generally Accepted Auditing Standards (GAAS). GAAS requires us to perform verification procedures in addition to enquiry, analytical procedures and discussion (used in review engagement) among other tests. Similar to reviewed financial statements, audited financial statements must follow Generally Accepted Accounting Principles (GAAP). Audited financial statements come affixed with an signed audit report from our firm. Audits are usually required for large loans, public corporations, for bonding and various other circumstances.
If you require further information about the services we provide respecting financial statements, please contact us.