Assurance
Compilation, review or audit: which financial statements does your bank need?
Quick answer
A compilation engagement provides no assurance. A review engagement provides limited assurance through inquiry and analysis. An audit provides reasonable assurance through detailed testing. Lenders commonly specify the level they require.
Key takeaways
- Each engagement serves a different need.
- A review engagement must be performed by a licensed public accounting firm.
- Confirm the lender requirement early in the process.
What a compilation engagement provides
A compilation organizes information supplied by management into financial statements without providing assurance.
What a review engagement changes
A review adds inquiry and analytical procedures, resulting in limited assurance for users of the financial statements.
How to confirm the right level
Ask your lender, surety or franchisor for its requirements before year end. The requested level affects timing, records and engagement planning.
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Assurance services, Calgary
GDPC is a Calgary CPA firm in practice since 2009. Let’s connect this question to the financial work that comes next for your corporation.
Explore the serviceSources & review
Reviewed by Gurjinder Dhillon, CPA, CGA, MBA. Check current primary guidance before acting on filing dates or tax questions: Canada Revenue Agency (opens in new tab) and WCB Alberta (opens in new tab).
Last updated October 26, 2026