In January 2020, CPA Canada published guidance to help readers understand the various reports that accompany financial statements. The objective of the Guide is to provide information related to financial statements and the different levels of service a CPA can provide with respect to communications on the financial statements (i.e., an audit, a review or a compilation).
According to the Guide: "Chartered Professional Accountants (CPAs) are valued for their integrity and proven financial expertise. The CPA’s signature on an audit report means the CPA can provide reasonable assurance on the presentation of the organization’s financial position, performance and cash flows." It is important to note, however, that not all financial statements are audited. Many small organizations do not require an audit. Their reporting needs can be met in other ways (for example, through reviews or compilations).
Whether the CPA is required to perform an audit, a review or a compilation, those who read financial statements and the accompanying communication can be confident the engagement was conducted in accordance with the rules of professional conduct/code of ethics. To learn more, download the 32-page Guide titled Understanding Reports on Financial Statements.
