The Auditing and Assurance Standards Board in Canada has recently issued a new standard on compilation engagements which will come into effect in a year’s time. This new standard applies to companies and other entities with year-ends on or after December 14, 2021 which means it will not apply to your company for the upcoming 2020 year end.
To enable you to plan ahead, we have outlined below a summary of the key differences between the existing standard and the new standard:
To ensure that you continue to receive the level of professionalism and services you normally expect from us, we will work with you to ensure a smooth and efficient transition to the new standard unless you instruct us differently. Please speak with your trusted professional adviser at SLF for additional details.
COMPILATION ENGAGEMENT REPORT
To Management of [Company]
On the basis of information provided by management, we have compiled the balance sheet of [Company] as at December 31, 2021, the statement of operations and retained earnings for the year then ended, and Note X, which describes the basis of accounting applied in the preparation of the compiled financial information, [and, if applicable, other explanatory information] (“financial information”).
Management is responsible for the accompanying financial information, including theaccuracy and completeness of the underlying information used to compile it and the selection of the basis of accounting. We performed this engagement in accordance with Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, which requires us to comply with relevant ethical requirements. Our responsibility is to assist management in the preparation of the financial information.
We did not perform an audit engagement or a review engagement, nor were we required to perform procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an audit opinion or a review conclusion, or provide any form of assurance on the financial information.
Readers are cautioned that the financial information may not be appropriate for their purposes.