Document background
The Engagement Letter For Financial Statement Preparation is a crucial document used in Canadian business practice when a company requires professional assistance in preparing its financial statements without the level of assurance provided by an audit or review engagement. This document is typically used by smaller to medium-sized businesses that need professional accounting assistance but don't require a full audit. It must comply with Canadian Standards for Related Services (CSRS 4200) and relevant provincial regulations governing the accounting profession. The letter details the scope of services, clearly distinguishes between a compilation engagement and assurance services, and establishes the responsibilities of both the accountant and the client. It's particularly important as it protects both parties by clearly defining the engagement's limitations and deliverables while ensuring compliance with professional standards and regulatory requirements.
