Assurance and
Accounting

At Mah LLP, we provide assurance and accounting services in three different types of engagements:  an audit, a review and compilation engagement. Each of these engagements requires a different level of assurance depending on the nature of our involvement and requires different levels of documentation and analysis.  We will work with you to identify the users of your financial statements and particular needs to ensure that our scope of work is appropriate for your requirements.

 

Audit Engagement

An audit provides an opinion whether the financial statements meet Canadian Generally Accepted Accounting Principles and are fairly presented. This involves a detail examination of the company’s financial statements providing the highest level of assurance. An audit is typically required for public companies and large private companies with multiple shareholders, extensive debt obligations and numerous financial statement users.

 

Review Engagement

Where an audit is not required or the shareholders have waived the appointment of an auditor, financial statements may be prepared on a review basis. Entities that are not required by law to have an audit may still want some level of independent assurance to increase the credibility of their financial statements.

Reviews provide limited assurance that the financial statements conforms to Canadian Generally Accepted Accounting Principles.  Since the work effort involved in performing a review engagement is generally less than that in conducting an audit, a review may be a more cost-effective option while still involving the financial reporting expertise of an independent professional accountant. The aim of a review engagement is to prepare and review financial statements to ascertain whether they are plausible, that is, worthy of belief.  A review is typically required for medium to large private companies with multiple shareholders and external debt obligations.

 

Compilation Engagement

A compilation engagement is the assembling of financial information solely by the company into a financial statement format and providing no level of assurance. It is not necessary to adhere to any appropriate accounting standard.

A Notice to Reader communication, which is stamped or printed on each page or attached to the financial information, is notification as to the limited use of the compilation engagement. A compilation is typically sufficient for small to medium private companies with a sole shareholder and has little or no debt obligations.