If you currently have an engagement for Notice to Reader/Compilation financial statements, this update is specifically for you. You can quickly identify if your year-end financial statements fall into this category by reading the title page of your latest financial statements. If you see the words “Unaudited – See Notice to Reader,” please keep reading.
Over the past few years, we have seen several changes to Canadian Review and Audit standards. After nearly 35 years without major changes, the spotlight is now on the aging Canadian standard for Notice to Reader/Compilation engagements. When will these changes impact you? It begins right now.
As we interact with your current year-end engagements, we will be updating your files in anticipation of its first year-end under the CSRS 4200 standard (December 31, 2021). There may be some questions directed to you that seem out of the ordinary; it is quite possible that they are driven by the requirements of the new standard. We hope that this increased understanding of your business results in even better client service going forward. When you review the engagement letter for your next Compilation engagement, you will notice that the letter looks and reads a bit different from what you’ve become accustomed to over the last few years. The Report on the finalized financial statements has significant changes as well. All of these changes are a result of the new CSRS 4200 Compilation standard.
Looking for more details? This CPA Canada Management Briefing goes into more depth on CSRS 4200 and how it might impact your year-end process. This is specifically targeted for business owners such as yourself. If this article doesn’t answer your immediate questions, please reach out to our office for a more detailed discussion.