Audits are incredibly important documents for corporations across all industries.
An audits is a comprehensive engagement used to provide financial statement users with an independent opinion about whether the financial statements are reasonably free from material misstatements. These financial statements are the accepted form of documentation expected by shareholders, bankers, creditors, and the government. Limited companies (corporations) are required, by both federal and provincial legislation in Canada, to prepare financial statements to be audited by independent accountants unless consent has otherwise been given.
As part of an audit engagement, Hutcheson & Co. will consider your organization’s internal financial controls, inspect documents, evaluate assets, and make inquiries to determine whether the financial statements are a reasonably accurate assessment of your organization’s financial standing during the time period for which it is audited.
During a review engagement, our procedures and expression of opinion are more moderate. A review engagement consists of discussion with management and performing financial analyses, instead of performing procedures to obtain verification and inspection which is required during an audit engagement.
A compilation engagement, also referred to as notice-to-reader financial statements, involves the preparation and compilation of financial statements. For this type of engagement, we will tailor the scope of procedures and analyses to each individual client’s needs. We may assist with the accounting adjustments needed at year-end. This is followed up by compilation of formal financial statements and discussions stakeholders about past performance and expected future results. The notice-to-reader report, which is issued upon completion of a compilation engagement, will clarify and disclose that no assurance has been expressed.
To help you determine which financial statement engagement that is right for you, please contact a member of our qualified team today.