Quality Control Ensured by Reviews of Financial Statements by CPAs in the GTA

CPAs Provide Client Assurance

A Chartered Professional Accountant (CPA) who is providing assurance for clients must follow standard monitoring processes. This is necessary both when conducting peer to peer reviews, as well as when undertaking a review of financial statements for businesses in the GTA (Greater Toronto Area). Only the nature and depth of the reviews varies.

CPA firms in the GTA must undergo on-going monitoring and sometimes they lack the appropriately qualified employee in-house to carry out the necessary analysis. In that case, it is necessary to outsource the task to another CPA firm.

Similarly, a cyclical inspection of a firm’s completed files must be undertaken. At least one engagement per partner must be inspected once every three years and, again, an outside firm can be brought in to fulfill the task.

In addition to self-regulation, CPAs can ensure your firm is maintaining the quality of its audit and reviews. In an ever-changing field of regulation, qualified CPAs can also assist a client (or another firm) to stay up-to-date with legislative, regulatory and professional standards.

Review Engagements are One Form of Monitoring

The purpose of a review engagement is to deliver a limited opinion on the financial statements of a company. Essentially it determines only that something does not exist – that there are no material errors in that financial statement and that its findings are free from fraud. This process has been described as limited assurance or negative engagement. It is carried out by an external accountant.

A review engagement is different from a compilation, in that it requires some testing of the information supplied, whereas a compilation relies on whatever information is provided. Unlike with a compilation, the accountant is expressing an opinion and also working in accordance with applicable reporting frameworks.

Audited financial statements are the strongest level of assurance service. Its goal is to provide reasonable assurance that financial statements are free of material misstatement. It also confirms that those statements have been prepared in accordance with accepted accounting frameworks. It requires a more rigorous investigative process than a review engagement before a positive assurance is issued.

What Kind of Firm Can Carry out Review Engagements?

As mentioned, a review engagement is carried out by an external accountant. This happens after a company’s financial statements have already been prepared and certified as accurate.

The St. Catharines-based firm of Jones & O’Connell LLP is one firm that is often called upon to perform review engagements. The certifications and experience of its partners and associates allow them to carry out a team-based approach to solving client’s needs, depending on what is needed. CPAs are available for out of office assurance tasks such as review engagements and they can carry them out in the Niagara Region, as well as the Golden Horseshoe and GTA.

If you require a review of your financial statements, call upon Jones & O’Connell LLP. They are equipped to serve a broad range of businesses and clients, as well as other CPA firms and Credit Unions. Focuses include financial planning and forecasting; systems planning; corporate and personal tax compliance and planning; financial advice; and general consulting. The company is also available to help set up computer accounting systems for clients.