**Article updated 2022**
What is a Compilation Engagement?
A Compilation Engagement involves providing detailed accounting records to an accountant who prepares the information into a compiled financial statement.
There is no assurance and no presentation or disclosure requirements as outlined in Canadian Standard on Related Services (CSRS) 4200.
What type of users would require these financial statements?
Users of financial information that do not require a review or audit or the detailed disclosures that accompany such engagements. Compilation Engagement financial statements are useful for many businesses in the preparation of their corporate tax return.
The CRA requires the inclusion of the General Index of Financial Information which is based on the preparation of a company’s financial statements. Compilation Engagement financial statements are used to create financial statements to facilitate this reporting.
Other purposes could include management reporting such as monthly operational or divisional reporting or cash flow projections.
If you require assistance preparing Compilation Engagement Financial statements, contact us today!