Choose Cahill for Your Review Engagement
Your expert Cahill CPA will schedule a review engagement for your business if needed. There is often confusion about the difference between review engagement and an audit. Although an audit is performed in an attempt to ensure that a business entity's financial statements are free of any material misstatements, a reviewing engagement is performed solely for the purpose of determining whether or not the financial statements examined are believable. An audit can result in a positive assurance that enables your accountant to state in the auditor's report that your financial statements comply with the Canadian accounting standards that apply to not-for-profit organizations.
A review, however, offers limited assurance that your company's financial statements comply with generally accepted accounting principles. This form of assurance is referred to as negative assurance. What this actually means is that your Chartered Professional Accountant is giving the assurance that he or she has not seen any indication that your company's financial data is not being presented in compliance with accounting standards for non-profit organizations in Canada. Both audits and reviewing engagements are normally end-of-year services that professional accountants offer to associations and non-profit clients.
Review Engagement Accountant - North Vancouver
Association by-laws may state which type of evaluation is required. If this is not stipulated in the by-laws, the service that you need will be dependent on the level of assurance you require to determine that these financial statements are complete without any material misstatements. Other factors that may decide which type of service you require may be the bookkeeping services involved with other matters affecting your association. Any association that was incorporated under the Canada Not-for-Profit Corporations Act (CNCA) must follow the requirements as detailed in the Act.
Specific review engagement accountant procedures that are required to be performed by your well-qualified Cahill CPA are relative to the following subjects or actions:
- Inquiries concerning the accounting principles and practices employed by the business;
- Procedures for recording and compiling financial data;
- Initiatives taken at meetings of owners or directors;
- Statements in writing from management relative to the accuracy of data given to your accountant for review engagement;
- Receipt of all related materials by the CPA from your review engagement accounting firm;
- Responsibility of managing officials for internal control;
- Awareness and knowledge of fraud;
- Information related to any important subsequent events;
- Analysis of significant comparisons;
- Examination of recorded monetary amounts by the review engagement CPA;
- Ratios derived from recorded monetary amounts by your accountant for review engagement; and
- Plausible interconnections of recorded amounts.
Assuring Accuracy of Your Financial Statements with a Review Engagement
This thorough analysis performed by your expert review engagement North Vancouver CPA is for the purpose of assuring the believable value and accuracy of your financial statements. The procedures employed will result in an improved understanding of primary relationships of specific numbers included in the statements. Your professional review engagement CPA will be able to give only limited assurance that no material revisions need to be made to these financial statements for them to comply with the accepted financial reporting framework in Canada. This is because a review engagement is much less intense and detailed than an audit.