Effective with your next year-end, there will be some changes we would like you to be aware of.
CPA Canada, our governing body, has issued a new standard requiring our firm to do some initial work with you in planning your year-end. The new standard is called Canadian Standard on Related Services 4200 (CSRS 4200). This new standard has been implemented to provide users or potential users of the financial statements clarification on how the compiled financial information is prepared and what work is performed by practitioners.
Some of the changes you can expect on your year-end engagement are as follows:
I. A new Compilation Engagement Report will replace the Notice to Reader Report on page 2 of your
financial statements. The new Compilation engagement report details more clearly what a compilation engagement entails.
II. A new Basis of Accounting note will be attached to your financial statements.
III. Prior to the commencement of your engagement, we will be contacting you to set up a phone meeting
with one of our staff accountants to discuss a number of items such as:
a. Identifying parties who will have access to your financial statements;
b. Documenting the basis of accounting used when recording your financial information;
c. Obtaining a greater understanding of your business.
IV. We will be asking you to sign a new engagement letter.
V. Once your year-end is complete, we will be asking you for additional acknowledgements, including taking responsibility for your financial information.
If you have any initial questions on the above, please do not hesitate to contact us. We appreciate the opportunity to continue to be of service to you.