01
Financial information
Accounting information is organized and compiled into financial information based on the records and information provided for the engagement.
CPA Firm Online provides compilation engagement services for eligible businesses requiring compiled financial information for financing, external-use or year-end reporting purposes, subject to applicable professional and jurisdictional requirements.
A compilation service involves assisting management in preparing compiled financial information based on information provided by management and issuing the applicable compilation engagement report.
Accounting information is organized and compiled into financial information based on the records and information provided for the engagement.
The completed engagement includes the applicable Compilation Engagement Report when the requirements for such an engagement are met.
A compilation service does not provide audit or review assurance on the compiled financial information.
It is different from an audit or review engagement, which involve different procedures and levels of assurance.
If a bank, lender, investor or other third party has requested financial statements, confirm exactly which type of engagement they require before proceeding.
The required engagement depends on the intended use of the financial information and the requirements of external users.
Each file is different, but a typical compilation service follows a structured process from initial assessment through completion.
We review the entity, reporting period, accounting records, intended use and requested financial information.
The required work, responsibilities, expected deliverables and professional fees are communicated before work begins.
Trial balance, bookkeeping records and supporting documents required for the engagement are collected.
Accounting information is reviewed to identify items requiring clarification or year-end adjustments.
Applicable year-end entries and accounting adjustments are prepared based on the agreed scope and information available.
Compiled financial information is prepared using the accounting basis appropriate to the engagement.
Management reviews the information and addresses outstanding questions before finalization.
Final compiled financial information and the applicable compilation engagement report are delivered.
Required documentation varies by entity and engagement. Common records may include:
For guidance on organizing your supporting documents, see the Canada Revenue Agency’s record-keeping guidance.
These services are related but serve different purposes.
| Service | Main purpose | Typical output |
|---|---|---|
| Bookkeeping | Maintain and organize accounting records throughout the year. | Updated accounting records, reconciliations and bookkeeping reports. |
| Compilation Services | Compile financial information for management or eligible external use. | Compiled financial information and applicable Compilation Engagement Report. |
| Corporate Tax Return | Determine and report corporate taxable income and tax information. | T2 corporate income tax return and applicable provincial filings. |
Tell us about your business, year-end, accounting records and intended use of the financial information. We can review the requirements and provide a written proposal based on the scope of the engagement.
The information on this page is general in nature and does not constitute accounting, tax, legal or assurance advice. The appropriate engagement depends on the intended users, their requirements and the circumstances of the entity. Services are subject to applicable professional and jurisdictional requirements.