Notice to Reader engagements are frequently the most common type of engagements performed by independent public accountants.
They are often favoured due to their ability to meet client needs in a cost-effective manner.
New rules are being introduced in 2020 which will substantially change how the compilation of historical financial information must be performed by practitioners.
These new rules are found in Canadian Standard on Related Services (CSRS) 4200 and become mandatory for the compilation of historical financial information for periods ending on or after December 14, 2021.
Early application of the new compilation standards is permitted.
Even though these new rules must not be followed until December 2021, understanding their impact is important in planning for changes necessary to successfully perform compilation engagements.
For those planning to implement the new rules prior to December 2021, an immediate understanding of the CSRS 4200 requirements is critical.
This course will set out the steps required under CSRS 4200 including:
• Identifying which services are considered to be compilation engagements
• Engagement acceptance restrictions when compiled information is expected to be distributed to third parties
• The requirement for a disclosed basis of accounting
• The amount of knowledge of the client required by the practitioner to perform the engagement
• Compilation procedures expected of the practitioner
• Required documentation
• The new “Compilation Engagement Report” While new standards are being issued for the compilation of historical financial information, the existing rules for future-oriented financial information are being retained.
Practitioners commonly underrate the professional requirements in the compilation of forecasts, projections and budgets resulting in both legal and professional difficulties. To address this p
David Baker CPA, CA
David Baker earned his CA designation in 1981, earning an award as a top UFE writer in the Waterloo Region. In 1983 he began his own public accounting practice in Elmira, Ontario serving local small and medium-sized owner-managed businesses