Compilation Engagement in Mississauga, ON
A compilation engagement is a CPA-prepared set of financial statements, formerly called a Notice to Reader, issued under CSRS 4200 without audit or review. Adian Professional Corporation prepares compiled financial statements in Mississauga for CCPCs, professional corporations and holding companies that need bank-ready, lender-ready and tax-ready statements, coordinated with your T2 corporate tax return. Learn more in our guide: what is a compilation engagement.
What Is a Compilation Engagement Under CSRS 4200?
CSRS 4200 is the Canadian standard issued by the AASB for periods ending on or after December 14, 2021, replacing Section 9200. A licensed CPA compiles management’s information under a disclosed basis of accounting, usually a simplified basis, without verifying it. The Compilation Engagement Report states that no assurance is expressed, which is all most Ontario private companies need. It is the lowest-cost alternative to a review or audit.
How Is CSRS 4200 Different From a Notice to Reader?
The content is the same, and parties that accepted Notice to Reader statements accept CSRS 4200 statements. The new report must disclose the basis of accounting and framework, state management’s responsibility explicitly and consider going concern disclosure.
Who Needs Compiled Financial Statements in Ontario?
- CCPCs filing a T2 return
- Businesses applying for bank loans or credit lines
- Self-employed borrowers, since mortgage lenders usually need two years of statements
- Shareholders using a buy-sell agreement or valuation
- Owner-managed businesses with no outside investors
- Holding, real estate and management companies
We serve professional corporations, real estate holding companies, construction and trades contractors, technology and consulting firms, retail and e-commerce businesses and property management companies across Mississauga, Meadowvale, Streetsville, Brampton and Oakville.
Compilation vs Review vs Audit: Which Do You Need?
A compilation verifies nothing and gives no assurance, at the lowest cost, and suits most CCPCs. A review (CSRE 2400) applies limited procedures and gives limited assurance, usually only when a lender or shareholders require it. An audit tests the numbers fully, issues a formal opinion at the highest cost, and is rarely needed outside public or regulated entities. Call 647-715-2156 for a straight recommendation.
What Is Included and How Does It Work?
You receive a Compilation Engagement Report, balance sheet, income statement, statement of retained earnings, notes, prior-year comparatives and supporting schedules, delivered as a PDF ready for lenders, lawyers or the CRA. Our process: engagement letter, access to your QuickBooks Online file or a year-end trial balance, preparation, basis of accounting selection, review with you, the signed report and T2 coordination for Schedules 100 and 125.
Professional Corporations (Doctors, Dentists, Lawyers)
Annual financial statements for T2 filing and personal tax planning.
Real Estate Holding Companies
Annual compiled statements for mortgage applications and T2 filing.
Construction and Trades Contractors
Financial statements for bonding, credit applications, and CRA compliance.
Technology and Consulting Firms
Year-end financial statements for T2 and shareholder agreements.
Retail and E-Commerce
Annual compiled statements for lenders and corporate tax filings.
Property Management Companies
Compiled statements for multiple entities and related party disclosure.
Frequently Asked Questions
CSRS 4200 Compilation Services
Is a CSRS 4200 compilation the same as a Notice to Reader?
Functionally, yes. A compilation engagement replaced the Notice to Reader in December 2021. The new standard requires more explicit disclosure of the basis of accounting and management’s responsibility, but lenders and the CRA accept both formats.
Does the CRA require audited financial statements?
No. The CRA accepts compiled CSRS 4200 financial statements for T2 filing. Your T2 Schedule 100 balance sheet and Schedule 125 income statement are taken directly from the compiled statements. Read our Schedule 100 and 125 guide.
Will my bank accept compiled financial statements?
Most chartered banks, commercial lenders and credit unions accept compiled statements up to their internal limits, after which they may ask for a review or audit. Confirm your lender’s requirements before we begin.
What do you need from me to prepare the statements?
For QuickBooks Online clients, we access your file at year-end. Other clients provide a trial balance or general ledger at fiscal year-end. We do not need your individual receipts or invoices.
How long does a compilation engagement take?
Usually two to four weeks after we receive complete information, and longer from February to April. We recommend starting within 60 days of your fiscal year-end.
Can you prepare my T2 return at the same time?
Yes. Most CCPC clients choose our T2 + T1 + CSRS 4200 package, starting at $3,500 + HST, so the statements and the return stay consistent.
Get Bank-Ready Financial Statements
Call 647-715-2156 or book a free consultation with a trusted CPA in Mississauga.
Ready to Get Started?
Contact Adian Professional Corporation CPA to discuss your compilation engagement. We serve incorporated businesses, CCPCs, and self-employed professionals in Mississauga, Brampton, Oakville, Burlington, and the Greater Toronto Area.
Call us at 647-715-2156 or schedule a free consultation online. We will confirm whether a compilation engagement meets your needs, or whether a review or audit is required for your specific situation.