Contractor
Notice to reader and compilation engagement: Guide
3/8/2026
The Preparation of Financial Statements is of paramount importance to entrepreneurs, as it is a key element in the decision-making and the Planning Future Activities of the business.
To ensure the reliability and credibility of these financial statements, it is common practice to engage CPA accountants who can perform various types of engagements offering different levels of assurance: the compilation engagement, the review engagement, and the Audit Engagement. Each of these engagements is intended to ensure that the financial statements comply with accounting standards in effect.
A notice to reader is a written document issued by an accountant or an independent auditor which examines the financial statements of a business. It is based on the accounting data and the information provided by the business’s management. It is important to note that the notice to reader does not constitute either a review engagement or an Audit Engagement, which means that the CPA provides no assurance regarding the quality of the financial statements.
The notice to reader provides only minimal information and may be used, in certain cases, by Financial institutions for obtaining a loan. However, it is crucial to keep in mind that the financial statements obtained through the notice to reader may not meet all the business needs. It is therefore essential to consider whether this approach is sufficient to meet your specific needs before proceeding.
The compilation engagement is directly related to Notice to Reader. In fact, during a compilation engagement, a chartered professional accountant (CPA) is responsible for compiling the financial data of the business to turn them into financial statements. The final document prepared by the accountant will then take the form of form of a notice to reader.
Since June 2009, only chartered professional accountants (CPAs) Holders of CA, CGA, or CMA designations are authorized to sign it. However, if the financial statements are used solely for internal purposes, a non-vetted accountant is authorized to sign them.
The Annual Preparation of Financial Statements is a responsibility that falls on every business owner. It is crucial that the information contained therein be accurate and faithfully reflect the company’s situation, particularly through the use of Financial Ratios.
To ensure that the information contained in your financial statements is accurate, Bankeo connects you with vetted accountants enabling you to create this document.
So please feel free to Contact Us If you would like to Find an Accountant to prepare a notice to reader, or if you need help preparing your Business taxes. https://www.bankeo.ca/
General information provided for informational purposes only, based on known 2026 tax rules. It is not a substitute for the advice of a Chartered Professional Accountant (CPA): always consult a professional regarding your specific situation.
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