Notice to reader or review assignment

Votre banque, un investisseur ou un programme de subvention vous demande des états financiers, et voilà le dilemme : trois niveaux d'engagement existent au Canada, l'avis au lecteur (devenu la mission de compilation), la mission d'examen et l'audit. Pour la grande majorité des PME et des sociétés incorporées, le choix se joue entre les deux premiers.

The stakes are in the thousands of dollars. A review engagement costs several times the price of a compilation, because the CPA must conduct actual procedures and commit to a conclusion. Paying for a review that no one requires means leaving several thousand dollars on the table each year; simply providing a reader's notice to a lender seeking insurance means delaying or losing that financing.

Here we explain what each mission actually covers, what it will cost in 2026, who can sign it and, most importantly, how to know which one your interlocutors expect before committing a single dollar.

The Notice to Reader engagement is officially called a compilation engagement since the implementation of NCSC 4200: the accountant formats the figures you provide and produces a communication that clearly states no assurance is given. They are not required to verify your data or be independent of your company, which explains its low cost—the lowest of the three engagement levels in 2026.

This is the standard level for filing the federal T2 return and the CO-17 in Quebec: neither the CRA nor Revenu Québec requires audited financial statements. The limitation is equally clear: as soon as a third party wants to rely on your figures to lend or invest, the compilation will not reassure them.

• Strengths: fast (often less than two weeks), economical, sufficient for corporate tax and internal use.
• Limitations: no insurance, low credibility with banks and investors, no independent review of your figures.
• For whom: private companies without significant debt, whose financial statements are used for management, close shareholders, and tax returns.
• Note: If your financing increases, your lender may require a review; validate their threshold before renewing your mandate.

The review engagement, governed by NCME 2400, provides limited assurance: an independent CPA conducts inquiries and analytical procedures to conclude that there is no indication that your financial statements do not present a true and fair view. It is not an audit, but it is a genuine professional review, reserved for CPAs authorized to perform assurance engagements.

Expect a budget several times higher than that of a compilation in 2026, depending on the size of the file and the quality of your bookkeeping, and a turnaround time of 3 to 6 weeks. This is the level most lenders and investors expect from a growing SME, and the level that allows a federal NGO to replace the audit with between $50,000 and $250,000 in annual revenue.

• Strengths: credibility recognized by banks and investors, mandatory independence of the CPA, good insurance-price ratio compared to auditing.
• Limitations: several thousand dollars more than a compilation, requires well-maintained accounting and the collaboration of your team.
• For whom: SMEs that finance their growth, prepare for a sale or need to reassure external partners without being legally required to undergo an audit.

The right question isn't "Which is the best?" but "Who will read your accounts?" Without a demanding external reviewer, a review engagement does the job for a fraction of the cost. As soon as a lender, investor, or law requires assurance, a full review engagement becomes the standard. And paying for a complete audit that no one demands remains the worst expense of both worlds.

• Choose the reader notice if your statements are used internally, for T2 and CO-17 returns and small credits: you save several thousand dollars a year.
• Choose the review mission if your bank requires it, if you are seeking funding or investors, or if your federal NGO is soliciting donations with revenues between $50,000 and $250,000.
• Only proceed with an audit if expressly required by law, grant, or contract: reasonable insurance is significantly more expensive than limited insurance.

Avant de signer un mandat, situez le budget global avec le Baromètre Bankeo : médiane d'environ 3 000 $ par année pour un comptable, fourchette de 500 $ à 6 000 $ selon le secteur, d'après les données 2024-2026 de 1 248 dossiers réels. On vous jumelle ensuite gratuitement avec un comptable vérifié qui offre le niveau de mission que vos interlocuteurs attendent, et on reste à vos côtés par la suite.

Will my bank accept a reader's notice?

Often, yes, for a line of credit or a small loan. However, each lender sets its own threshold: beyond a certain level of commitment, a review becomes the norm, sometimes even an audit. Before paying anything, ask your account manager in writing what level of assurance is required for your file in 2026.

Qui peut signer une mission d'examen au Canada?

A CPA authorized to perform assurance engagements, which requires a public accounting license in most provinces, including Quebec and Ontario. The engagement follows the Canadian Standards for Corporate Accounting (CSCA) 2400 and mandates the professional's independence. The notice to reader, however, can be prepared by an accountant, and in practice, very often by a CPA as well.

How much does a review assignment cost compared to a notice to the reader in 2026?

La compilation est la moins coûteuse des missions; l’examen coûte plusieurs fois plus, parce que le CPA mène des procédures et engage sa conclusion. La facture exacte dépend de la taille du dossier et de la qualité de la tenue de livres. Pour situer le budget comptable global, le Baromètre Bankeo observe une médiane d’environ 3 000 $ par année, de 500 $ à 6 000 $ selon le secteur.

Does the reader's notice still exist in 2026?

The term remains common, but the standard has changed: since 2021, NCSC 4200 governs compilation engagements, and the report is now called a communication regarding the compilation engagement. The principle remains the same: no assurance is provided. If your accountant still refers to it as a notice to the reader, it's exactly the same engagement.

Is a notice to the reader sufficient for my T2 or CO-17 declaration?

Yes. Neither the CRA nor Revenu Québec requires reviewed or audited financial statements to file the federal T2 return or the Quebec CO-17: the figures are transmitted in the general index of financial information. Therefore, compiling them remains the most economical option when tax compliance is your only concern.