{"id":13921,"date":"2025-07-09T10:32:47","date_gmt":"2025-07-09T14:32:47","guid":{"rendered":"https:\/\/cpaquebec.wp.vortexdev.com\/general-public\/the-cpa-profession-and-the-protection-of-the-public\/the-profession-at-a-glance\/les-cpa-et-les-etats-financiers\/"},"modified":"2026-01-30T11:55:39","modified_gmt":"2026-01-30T16:55:39","slug":"cpas-and-financial-statements","status":"publish","type":"page","link":"https:\/\/cpaquebec.wp.vortexdev.com\/en\/general-public\/the-cpa-profession-and-the-protection-of-the-public\/the-profession-at-a-glance\/cpas-and-financial-statements\/","title":{"rendered":"CPAs and financial statements"},"content":{"rendered":"\n
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What are the differences between compilation, review and audit engagements? What role does the CPA play?<\/p>\n\n\n\n

Here\u2019s what you need to know to navigate the engagement landscape.<\/p>\n\n\n\n

Most entities, whether corporations, NFPOs or government agencies, are legally required to present annual financial statements to their shareholders, members or the government, as the case may be. The law also requires certain entities to have their financial statements audited. In most cases, an entity\u2019s management, with oversight from those charged with governance, is responsible for preparing financial statements. The scope of the CPA\u2019s mandate depends on the entity\u2019s needs and the requirements it must satisfy.<\/p>\n\n\n\n

Chartered professional accountants provide three levels of service with respect to communications (reporting) on financial statements:<\/p>\n\n\n\n

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  1. Audit<\/li>\n\n\n\n
  2. Review<\/li>\n\n\n\n
  3. Compilation<\/li>\n<\/ol>\n\n\n\n

    CPAs perform these services in accordance with their code of ethics and assurance standards established by the Canadian Auditing and Assurance Standards Board (AASB). Assurance standards (which include audit, review and compilation standards) are contained in the CPA Canada Handbook \u2013 Assurance<\/em>.<\/p>\n\n\n\n

    The nature and extent of the work performed by CPAs has a direct impact on the level of assurance or credibility given to the financial statements and the cost of audit, review and compilation services. For each service, the CPA provides a different communication (i.e. \u201cIndependent auditor\u2019s report<\/strong>,\u201d \u201cIndependent practitioner’s review engagement report<\/strong>,\u201d or \u201cCompilation engagement report<\/strong>\u201d), which sets out the extent of work performed and the level of assurance expressed by the CPA.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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    Three levels of service<\/h2>\n<\/div>\n<\/div>\n\n\n\n
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    1. Audit engagement – Independent auditor\u2019s report<\/h3>\n\n\n
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