What are the requirements for each?
Do you know the difference between the three levels of financial reporting that your company can choose from?
Notice to Reader engagement
The Notice to Reader engagement is the most appropriate, cost-effective and simplest engagement a small business can enter into. It is the standard for all small businesses in Canada, and we recommend it for businesses like yourself.
Review engagement
A review engagement is the middle tier. It involves a deeper level of analytical review and questioning when preparing financial statements. You'll often see this type of engagement when there are significant shareholders not involved in the day-to-day operations. Financial institutions require it to secure significant lending. This is overkill for most small businesses.
Audit engagement
An audit engagement is for public companies and municipalities. It is the highest level of reporting but is not often necessary for the small businesses that we work with.