Financial Reporting

Financial statements must be prepared in accordance with Canadian generally accepted accounting principles (GAAP) as set out in the CPA Canada Handbook.
Financial reporting consists of either a compilation, review or audit engagement.
The objective of a compilation engagement is to compile unaudited financial information into financial statements based on information supplied by the client.
The objective of a review engagement is to prepare and review financial statements to ascertain whether they are plausible or worthy of belief. The objective of an audit engagement is to enable independent public accountants to render an opinion on the fairness of the client’s financial statements.