Compilation Engagement Support
Support for businesses organizing and preparing financial information that may be used in a compilation engagement under Canadian Standard on Related Services (CSRS) 4200.
CSRS 4200, Compilation Engagements, applies to compiled financial information for periods ending on or after December 14, 2021. It replaced the previous Section 9200 compilation standard commonly associated with notice-to-reader financial statements. Under CSRS 4200, the basis of accounting used to prepare the compiled financial information is described, management remains responsible for the information provided, and an accompanying Compilation Engagement Report explains the responsibilities of management and the practitioner.
A compilation engagement is different from an audit or review engagement. The practitioner assists management in preparing financial information but does not perform an audit or review and does not provide assurance on the accuracy or completeness of the financial information. Management remains responsible for the underlying records, the information supplied and the basis of accounting used.
Before a formal compilation engagement can be completed, the underlying bookkeeping and accounting records need to be sufficiently organized for the financial information to be prepared. A4SB can assist with bookkeeping, reconciliations, account organization, year-end accounting information and other preparation work associated with the compilation process.
What's Included
- Review and organization of bookkeeping and accounting records
- Reconciliation of accounts before financial information is prepared
- Preparation of year-end accounting information and supporting schedules
- Organization of information required for the applicable basis of accounting
- Coordination of financial information required for a compilation engagement
FAQ
What is a CSRS 4200 compilation engagement?
A compilation engagement involves a practitioner assisting management in preparing financial information using information supplied by management. A Compilation Engagement Report accompanies the compiled information and explains the responsibilities of management and the practitioner. A compilation does not provide audit or review assurance.
Is a compilation the same as an audit or review?
No. A compilation engagement does not involve the level of verification performed in an audit or review, and the practitioner does not express an audit opinion, a review conclusion or another form of assurance on the compiled financial information.
My bank asked for a notice to reader. What does that mean?
Notice to reader is terminology associated with the previous Canadian compilation standard. CSRS 4200 replaced that standard for compiled financial information for periods ending on or after December 14, 2021. If a lender requests financial information or refers to a notice to reader, the specific reporting requirements should be confirmed with the lender before the engagement begins.
Do my bookkeeping records need to be complete first?
The financial information used in a compilation engagement is based on information provided by management, so organized and current accounting records are important. If bookkeeping or reconciliations are incomplete, those records may need to be brought up to date before the compilation work proceeds.
Does a compilation engagement provide assurance on my financial information?
No. Under CSRS 4200, the practitioner does not perform an audit or review and does not provide assurance on the compiled financial information.
Need help with Compilation Engagement Support?
Tell A4SB about your accounting needs and we can discuss the support that may be relevant to your situation.