Top CPA Firms for Review Engagements in Toronto

Professional review engagements provide independent assurance on financial statements. Understanding review engagements helps you choose appropriate assurance level and maximize value:

Assurance Hierarchy: Compilation vs. Review vs. Audit

• Compilation – Accountant prepares financial statements from client data (no assurance provided). Lowest cost, lowest assurance. For internal use only.
• Review Engagement – CPA performs analytical procedures and inquiries (limited assurance). More than compilation, less than audit. Appropriate for lender/investor requirements.
• Audit – Auditor performs comprehensive testing (high assurance). Most comprehensive, highest cost. Required by some lenders and for public companies.

Review Engagement Standards (CAS 2400)

• Inquiry and Analytical Procedures – Reviews use inquiries of management and analytical procedures (not detailed testing like audits).
• Limited Assurance – Reviews provide limited assurance (negative assurance in CPA report) that no material issues came to attention.
• Realistic Assurance Level – Reviews provide reasonable confidence for most lenders/investors but less certainty than audits.
• Timeliness – Reviews typically complete in 3-6 weeks (faster than audits requiring 8-16 weeks of detailed testing).

When Reviews Are Appropriate

• Financing Applications – Most lenders accept reviews (though some require audits for larger loans or risk profiles).
• Investor Confidence – Reviews provide third-party assurance for outside investors and stakeholders.
• Nonprofit Accountability – Most nonprofits can satisfy donor/CRA requirements with reviews rather than audits.
• Audit Preparation – Reviews establish foundation (documentation, internal controls assessment) for eventual audit transition.

Review vs. Audit Differences

• Scope – Reviews limited to inquiries/analytics; audits include detailed testing, sampling, observations.
• Cost – Reviews typically CAD 3,500-25,000+; audits CAD 10,000-100,000+ depending on complexity.
• Timeline – Reviews 3-6 weeks; audits 8-16 weeks or more.
• Assurance – Reviews provide limited assurance; audits provide high assurance.
• Report – Review reports include limitations; audit reports provide unqualified opinion (when appropriate).

Preparing for a Review Engagement

• Organize Records – Ensure bank statements, invoices, and documentation are available for CPA review.
• Complete Trial Balance – Provide current trial balance and prior year financial statements for comparison.
• Identify Unusual Items – Notify CPA of unusual transactions, adjustments, or accounting changes during the year.
• Allow Access – Provide CPA access to management, records, and systems for inquiry and testing.
• Establish Timeline – Confirm review completion deadline (usually 3-4 weeks from engagement start) and coordinate accordingly.

• Assess Your Review Needs – Determine why you need the review (financing, investor, audit prep, donor accountability). This determines which CPA strengths matter most.
• Get 2-3 Quotes – Compare costs, included services, estimated timeline, and which firm you feel most confident with. Ensure apples-to-apples comparison.
• Verify CPA Credentials – Confirm firms have CPAs (CPA designation is critical for credibility). Ask about review engagement experience and CAS 2400 familiarity.
• Ask About Turnaround – Confirm typical review completion timeline (3-4 weeks for straightforward reviews is standard). Understand if complexity will extend timeline.
• Check Lender Acceptance – If financing-focused, ask if lender accepts their review reports. Different lenders have different preferences.
• Assess Audit Readiness – If planning eventual audit, ask if firm will prepare you for audit transition and what additional procedures might be needed.
• Get References – Request 1-2 business references. Ask about quality of review, credibility with lenders, responsiveness, overall satisfaction.
• Understand Reporting – Ask what the review report will include, what limitations will be noted, and how it will be received by lenders/stakeholders.
• Evaluate Communication – Do they explain the review process clearly? Are they responsive to questions? Good communication matters during the engagement.
• Trust Your Instinct – Best review relationship is with firm that understands your business, delivers quality work, and communicates clearly about financial accuracy.