Notice to reader (compilation engagement)

A notice to the reader, now known as a compilation engagement, is the simplest service an accountant can provide regarding your financial data: it formats your financial statements (the business’s financial profile) based on the information you provide, without verifying it or guaranteeing its accuracy. It’s the least expensive option.

At a glance

The most limited level of assurance on financial statements (the business’s financial profile)
The accountant formats your numbers without verifying them
No assurance provided (unlike a review engagement or audit engagement)
The simplest and least expensive option
Often sufficient for a small business’s tax purposes or internal use, but not always for a bank loan

Why it matters

Think of it as a cleanup: the accountant takes your numbers and presents them in a standard format, but doesn’t play detective. This is often enough to file a small business’s tax return or for internal use. However, if your bank or an investor wants assurance that your numbers are accurate, you’ll need to take it a step further with a review engagement or audit conducted by a CPA (Accountant). Choosing the right level helps you avoid paying more than necessary. Bankeo connects you for free with a vetted accountant or CPA to advise you, and we’re here to support you every step of the way.

In practical terms, it’s the least expensive of the three levels: the review engagement Offers a basic insurance plan and the most comprehensive insurance plan, each costing more. A compilation simply lists your financial statements in good standing; in Quebec, this work is governed by the standards of the Ordre des CPA (source). An accountant’s fees vary greatly depending on the scope of work: the Bankeo Fee Barometer puts the median fee at around $3,000 per year (ranging from $500 to $6,000), and a simple compilation falls at the lower end of that scale. Bankeo connects you for free with a vetted accountant to help you find the right fit, and we’re here to support you every step of the way.

Frequently asked questions

What is a “notice to reader” in simple terms?

This is when the accountant takes the figures you provide and neatly organizes them into financial statements, without verifying them. The accountant clearly states that they haven’t verified anything: the responsibility for the figures lies with you. Simple, fast, and cost-effective.

What is the difference between a “notice to reader,” a “review,” and an “audit”?

The notice to reader (compilation) compiles figures without any assurance. The review engagement provides moderate assurance. The audit provides the highest level of assurance. As the level of assurance increases, so do the amount of work and the cost.

Is a “notice to reader” sufficient for my bank?

It depends on the bank and the amount. For a large loan, many banks require at least a review engagement. Check the requirements before hiring your accountant. Bankeo connects you for free with a vetted accountant or CPA to help you choose the right level, at no cost to the business owner, and we’re here to support you every step of the way.