SERVICES
Review Engagements in Ontario: What They Are and Who Can Do Them?
Many business owners often have a question: “Do we need our financial statements reviewed?”. In most cases, it is not the CRA (Canada Revenue Agency) that requires review, but banks, lenders, investors, and funding agencies often do. A review engagement is a formal process conducted by an LPA (Licensed Public Accountant) that provides limited assurance for your financial statements. This process involves analytical procedures and inquiries to ensure the financial data is reasonable and follows the professional framework of ASPE standards. This helps your lenders gain confidence in your business’s financial health and helps in risk management.
Whether you are applying for a loan, renewing existing credit, or reporting to external stakeholders, a review engagement signals transparency, financial reliability, and professionalism. These are the critical factors for securing and maintaining the trust and support of lenders and investors. To legally provide these services, a professional must be a Chartered Professional Accountant (CPA) and also hold a Public Accounting Licence (LPA) issued by the Chartered Professional Accountants of Ontario. Only a CPA with an LPA designation can:
- Perform Review Engagements under CSRE 2400, which offer limited assurance on financial statements.
- Perform Audit Engagements under the Canadian Auditing Standards, providing a high level of assurance.
- Sign off on Compilation Engagements under CSRS 4200, which are commonly required for management or internal purposes.
Want to confirm if your accountant is licensed?
You can easily verify if a CPA is registered and holds a Public Accounting Licence (LPA) in Ontario by visiting the CPA Ontario Member Directory. It's a quick way to ensure you're working with a qualified professional. When businesses need reviewed financial statements, it's rarely optional. It’s usually a requirement set by banks, lenders, or funding partners. Despite the critical nature of these reviews, there can often be stressful experiences and minor inconveniences. And these can lead to missed deadlines, breaches of loan covenants, and strained relationships with financial stakeholders. The most common pain point that clients face is missed deadlines, which leads to a delay in the delivery of the financial statement. These problems can quickly escalate into loan defaults, higher interest rates, or even damage financial credibility. At SGA CPA, we eliminate these risks through structured processes and clear timelines.
