Vancouver accounting services
Compilation engagements in Vancouver.
Need year-end financial statements for your company, a lender or a shareholder? DSJM prepares compilation engagements under CSRS 4200. Start by confirming who will use the statements and what they require.
The purpose
What a compilation does.
A compilation uses information provided by management to prepare financial information with a compilation engagement report and an explanation of the basis of accounting. It provides no assurance: it is not an audit or a review.
You may still hear “Notice to Reader”, the name used for the previous reporting standard. Tell David exactly what the request says. A lender’s requirement should be confirmed before choosing the engagement.
Source: CPABC guidance on CSRS 4200 compilation engagements.
Compilation or review?
Check the required level first.
A compilation can suit a business whose intended users do not require assurance. A review engagement provides limited assurance and has a different scope and fee. An audit provides a higher level of assurance; if that is requested, say so before work is agreed.
DSJM lists compilation and review services. Neither should be selected solely because it is the lower-priced option. Ask the bank or other intended reader to confirm their requirement.
Preparation
The information to bring.
- The intended users, purpose and any written lender or shareholder requirement.
- Your year-end date, prior statements and existing bookkeeping arrangements.
- The state of the reconciliations and any outstanding records.
- Whether you also need a T2 return or help bringing the books up to date.
Management remains responsible for the information. David will establish the appropriate scope and the records required before work starts.
Fees
Starting fees, with the services separated.
Compilation statements start at CAD $1,200 alongside a T2, or CAD $2,000 on their own. The corporate tax return is separately priced from CAD $1,500. Review engagements start at CAD $4,000.
See pricing and example totals. Cleanup or unusual complexity can change the quote. For the related work, see corporate tax and bookkeeping cleanup.
Common questions
Before you book.
Will my bank accept a compilation?
Ask the bank to confirm its requirement in writing. Some requests call for a review or audit. A compilation cannot substitute for an assurance engagement when one is required.
Is this the same as filing a T2?
No. A T2 is a corporate income tax return. A compilation engagement is a separate financial reporting service. They can be prepared together with separate fees.
Are the numbers audited?
No. A compilation does not provide assurance. A review and an audit are different engagements.
Can you prepare statements if another person keeps the books?
Discuss that arrangement with David. The records need to support the work, and any cleanup must be identified and scoped before preparation.
Next step
Book a call.
Fifteen or twenty minutes, no charge. You describe the situation, David tells you whether he can help and what it would cost.
info@dsjmaccounting.com