Gondaliya CPA Professional Corporation
CPA Compilation Report Format — Sample Engagement Report and What It Means
Licensed Ontario CPA firm · Flat-fee pricing · Toronto, Ontario
What a Compilation Engagement Is
A compilation engagement is a service where a CPA takes the financial data you provide and assembles it into a readable set of financial statements. The statements usually include a balance sheet and a statement of operations and retained earnings.
The CPA does not audit the numbers. The CPA does not review them either. The work is limited to organizing your figures into a proper format that follows a stated accounting basis.
Because there is no audit and no review, the report carries no assurance. It does not tell the reader that the numbers are correct. It tells the reader that a CPA helped put the statements together and that the basis of accounting is disclosed in a note.
In Canada, compilation engagements follow CSRS 4200. This standard replaced the older Notice to Reader. It requires a clearer report, a note describing the basis of accounting, and a check that the statements are not intended to mislead.
Who Needs One
Most small and mid-sized corporations that do not need an audit choose a compilation. It is the lowest-cost option that still gives you formal financial statements prepared by a licensed CPA.
You may need a compilation engagement if any of the following apply:
- Your bank or lender asks for CPA-prepared financial statements to support a loan or a line of credit.
- You need statements to file your corporate T2 return with clean, organized numbers.
- A shareholder, partner, or buyer wants to see formal statements.
- You want a proper record of your year-end position without the cost of an audit.
If a third party requires assurance on your numbers, a compilation is not enough. In that case you would need a review or an audit. Please tell us up front what the statements are for, so we can confirm a compilation is the right fit.
Sample Compilation Engagement Report
Below is an example of the report we issue. It is written in plain language. The wording is illustrative and is not a copy of the standard text.
Sample — Illustrative Only
Sample Compilation Engagement Report (Illustrative)
To [Client Company Name] Inc.
Management provided the underlying financial data used to prepare the enclosed statements for [Client Company Name] Inc., covering the balance sheet as at [date] and the related statement of operations and retained earnings for the corresponding year. Note 1 sets out the accounting basis applied in putting these statements together.
Responsibility for the completeness and accuracy of that underlying data, and for choosing the applicable accounting basis, rests entirely with management.
Our work was carried out under the compilation engagement standard applicable in Canada, which requires us to follow the relevant ethical rules of the profession.
Our role was limited to helping management assemble the financial information into readable statements. We did not carry out an audit or a review of this information, and we were not required to test, confirm, or otherwise verify the accuracy or completeness of what management provided to us.
As a result, no audit opinion, review conclusion, or assurance of any kind is being expressed on this financial information. Anyone intending to rely on these statements should first confirm they are suitable for their intended purpose.
For Gondaliya CPA Professional Corporation,
Sharad Gondaliya, CPA (Canada & USA)
CPA Ontario Membership: 61040184
CPA Firm Registration Number: 61330051
Verify member: https://www.cpaontario.ca/protecting-the-public/directories/member/gondaliya-3gme05
Verify firm: https://www.cpaontario.ca/protecting-the-public/directories/firm/gondaliya-5sqvmj
Toronto, Ontario
[Date]
Our Flat Fee
We charge a flat fee for compilation engagements. There is no hourly billing and no surprise invoice at the end. You know the price before we start.
The fee below is quoted on an annual basis and includes HST.
| Service | Compilation Fee (annual, incl. HST) |
|---|---|
| CPA Compilation Report Service | $400 (including HST) |
The compilation is usually prepared together with your corporate T2 return, so the numbers flow straight into your filing. Please contact us with your revenue figure and we will confirm your exact flat fee in writing.
Flat Fee vs. Hourly Billing
Understanding how accounting fees are structured helps you choose a service that fits your budget. Gondaliya CPA uses a transparent flat-fee model, while many firms use traditional hourly billing.
| Gondaliya CPA Flat-Fee Model | Typical Hourly Billing Model |
|---|---|
|
How the fee is set One fixed annual fee based on the agreed scope of the compilation engagement. |
How the fee is set Fees are calculated based on hourly rates and the amount of time spent completing the work. |
|
When you know the total You know your total cost before work begins, making it easier to budget and plan. |
When you know the total The final cost depends on the time required and may only be known after the work is completed. |
|
What happens if questions come up Routine questions related to your engagement can be discussed without worrying about unexpected hourly billing for every interaction. |
What happens if questions come up Additional discussions or requests may increase the final invoice depending on the firm's billing approach. |
|
Payment method One simple flat-fee payment with the price communicated upfront before work begins. |
Payment method Invoices are typically issued based on the number of hours worked. |
Our Turnaround Time
We work on a fixed turnaround. Once we have your complete records, we assemble the statements and issue the report without delay.
| Stage | Time After Complete Records Received |
|---|---|
| Draft statements sent to you | 5 business days |
| Final report issued after your approval | 2 business days |
Turnaround Comparison
| Gondaliya CPA Committed Turnaround | Common Industry Experience |
|---|---|
|
5 business days Once complete documents and required information are received. | Turnaround times vary depending on workload, staffing availability, and engagement complexity. Many firms provide estimated timelines rather than a specific completion commitment. |
These timelines depend on receiving a complete set of records. If documents are missing, the clock starts once the file is complete. We work evenings and weekends to 9 PM, so please reach out whenever suits you.
Documents We Need From You
To prepare your compilation, please send us the following:
- Your prior year financial statements, if any.
- Your general ledger or bookkeeping file for the year.
- Bank statements covering the full fiscal year.
- Credit card statements for any business cards.
- Loan and lease agreements, with the year-end balances.
- A list of assets bought or sold during the year.
- Details of any amounts owed to or by shareholders.
- Your HST and payroll filings for the year, if applicable.
If you keep your books in QuickBooks Online or Xero, please give us access and we will pull what we need. The more complete your records, the faster we finish.
How to Verify Our Licence
You should always confirm that your accountant is a licensed CPA firm in good standing. Please verify us directly on the CPA Ontario public directory.
- Verify member: https://www.cpaontario.ca/protecting-the-public/directories/member/gondaliya-3gme05
- Verify firm: https://www.cpaontario.ca/protecting-the-public/directories/firm/gondaliya-5sqvmj
Our CPA Ontario Membership is 61040184 and our Firm Registration Number is 61330051. These numbers appear on every report we issue.
FAQ
Is a compilation the same as an audit?
No. An audit gives an opinion on whether your statements are fairly presented. A compilation gives no opinion and no assurance, and simply organizes your data into statements.
Can I use a compilation report for my bank loan?
Often yes, if your lender accepts compiled statements. Some lenders ask for a review or an audit instead. Please confirm with your lender before we start.
Do you verify the numbers I give you?
No. In a compilation we do not test or confirm your figures. Responsibility for the accuracy of the data stays with management.
Is HST included in your fee?
Yes. Every fee shown on this page already includes HST. The price you see is the price you pay.
How do I pay?
Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Auto-deposit is enabled, so the security question is Not Applicable. We send an invoice before payment is due.
Can you file my T2 return at the same time?
Yes. We usually prepare the compilation and the corporate T2 return together. This keeps your numbers consistent and saves you time.