Compilation Engagements (CSRS 4200)
When a lender or stakeholder wants CPA-compiled statements with a formal report attached, that’s a compilation engagement. We perform them to the current standard, so the statements carry the weight your reader expects.
A compilation engagement is a specific CPA service: we compile financial information you provide into financial statements and attach a compilation engagement report. It’s the most common engagement for small private corporations that need something more formal than internally-prepared statements but don’t require the cost of a review or audit. Since December 2021, compilations follow the CSRS 4200 standard, which replaced the old "Notice to Reader" and added clearer requirements — including a note describing the basis of accounting used. We handle the whole engagement to that standard.
What a compilation engagement includes
- Compiled financial statements from the information you provide
- A compilation engagement report, prepared under CSRS 4200
- A note describing the basis of accounting used to prepare the statements
- Statements suitable for lenders, shareholders and other stakeholders
- Coordination with your T2 corporate tax return
- Clear explanation of what the engagement does — and doesn’t — provide
What a compilation is — and what it isn’t
A compilation is the right level of engagement for many small corporations, but it’s important to understand what it provides so you and your reader have the right expectations.
It compiles, it doesn’t assure
In a compilation, we assemble your financial information into statements — we don’t audit or review it, and the report doesn’t express an opinion or provide assurance. It’s the right, cost-effective choice when the reader doesn’t require assurance.
CSRS 4200 replaced "Notice to Reader"
Effective for periods ending on or after December 14, 2021, the CSRS 4200 standard replaced the old Notice to Reader engagement. The compilation report is more informative and requires disclosure of the basis of accounting used to prepare the statements.
Who needs one
Lenders, landlords, bonding companies and shareholders often ask for CPA-compiled statements. A compilation gives them statements prepared and reported on by a Chartered Professional Accountant, without the cost of a review or audit.
The basis of accounting matters
Under CSRS 4200, the statements must disclose the basis of accounting used to prepare them. We determine and clearly describe the appropriate basis for your business, so the statements are transparent about how they were built.
When you need more
If your reader specifically requires assurance — a lender covenant, a large financing, certain shareholder situations — a compilation isn’t enough, and a review or audit engagement is needed. We’ll tell you honestly which engagement your situation calls for.
Working with EverStone, start to finish
We scope the engagement
We confirm what your reader actually requires and whether a compilation is the right level, then quote a fixed fee before any work begins.
We compile the statements
We compile your financial information into statements under CSRS 4200, determine the appropriate basis of accounting, and prepare the compilation engagement report.
We deliver and explain
You get statements with the report attached, ready for your lender or stakeholder — and a clear explanation of what the engagement provides.
A compilation produces formal year-end financial statements and works hand in hand with your corporate tax return and bookkeeping.
Compilation engagement questions
What is a compilation engagement?+
Is this the same as a "Notice to Reader"?+
How much does a compilation cost?+
Do I need a compilation, a review, or an audit?+
Can you also file my corporate taxes?+
Why clients stay with EverStone
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Need CPA-compiled statements?
We perform compilation engagements under CSRS 4200, with the report your lender or stakeholder expects. Get a fixed quote after a free consult.