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The Notice to Reader financial statement is a document that shows the financial results of your corporation. It has many of the same finanicial components as an Audit Engagement or Review Engagement report but is generally less expensive.
It does not require using a Chartered Professional Accountant (CPA). The Notice to Reader reporting process allows you to take advantage of continuous improvement opportunities throughout the year with minimum disruption to your operations or finances.
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The price is right
To decide whether or not you should purchase this product, it’s important to understand what it is and how it works.
In short, the Notice to Reader financial statements is an option your company can choose when they receive their annual financial statements from their auditor. They contain information about your company’s results and performance during a specific period. The Notice to Reader is sent as part of the annual report, which is filed with securities regulators in Canada.
Another benefit of getting a Notice to Reader financial statement is that it can be done on a small budget. If your corporation’s finances are straightforward, you can easily get one without hiring an auditor or paying for other services. However, if you want to get a Review Engagement or Audit financial statement, your corporation must be audited by a CPA, which will cost more money.
Moreover, because Notice to Reader audits are less complicated than Review Engagements and Audits, they do not require special skills from those who perform them. That means that anyone, such as an inexperienced bookkeeper, can handle this job without needing additional training! Anyone with basic accounting principles can do them if they have access to the right software programs (there are plenty out there).
The number of employees makes it possible to use Notice to Reader reporting.
If you are a corporation and your company has these characteristics, you may be able to use Notice to Reader reporting:
- Your corporation has fewer than 25 employees.
- Your corporation generates less than $5 million in annual revenues.
- Your business is simple or non-profit; it does not have complex financial transactions, such as leasing property or equipment and loans from third parties (e.g., banks).
The process is simple.
If you’re wondering how to get a Notice to Reader financial statement, the process is simple:
- You can do it yourself using our online tool
- We can also send you one on your behalf if you prefer (for a small fee)
- Or we can prepare them for you as part of our bookkeeping services
You get limited assurance.
Notice to Reader that an independent auditor does not audit financial statements. Neither are they reviewed or approved by the board of directors.
If you receive a Notice to Reader, the auditor does not obtain sufficient evidence about your organization’s controls and procedures for financial reporting, so he has decided not to include an opinion in his report.
This does not imply any errors in your financial statements, but it does mean that whoever prepared them is responsible for ensuring they conform with IFRS standards. If you find yourself using such a notice often, it could be time to review your internal processes and controls!
Notice to the Reader that financial statements are prepared quickly.
Notice to the Reader that financial statements are prepared quickly and inexpensively, which makes them a good option for small businesses. The average reader can easily understand them, so they don’t require an accountant or other professional to interpret their meaning.
Notice to Reader financial statements include all the required information on a standard balance sheet and income statement, as well as additional notes about why certain accounting standards were used instead of others.
The Notice to Reader financial statements are typically about half the price of a Review Engagement or Audit financial statement.
The Notice to Reader financial statements are typically about half the price of a Review Engagement or Audit financial statement. While this may seem like significant savings, it is important to remember that the Notice to Reader financial statements is not as thorough as either of these other options.
A Notice to Reader audit will not have the same thoroughness or scope as an Audit review and does not provide the same level of audit protection or assurance as an Audit engagement. This means that if there are problems with your company’s finances, a notice to Reader will likely miss them completely!
The notice to reader financial statements are a good option if you only want a quick verification of your books at a reasonable price.
The Notice to Reader Financial Statements is a good option if you only want a quick verification of your books at a reasonable price. The Notice to Reader is not intended to be used by investors or other financial statement users for their purposes but as part of the annual report process. If you need an opinion on whether your company’s full financial statements are fairly stated, we recommend hiring an independent audit firm to conduct and issue an audit report.
The Notice to Reader Financial Statements provides readers with minimal information about the corporation’s assets and liabilities as of the date shown in the notice. The Reader should note that these statements are not audited by external third parties and must be read in conjunction with other documents provided within this annual report (i.e., under “Management Discussion & Analysis“). Readers must understand what information they can expect from the Notice To Reader Financial Statement before they decide whether it meets their needs.
You can use Notice to Reader reporting for both internal management purposes and external reporting needs.
You can use Notice to Reader reporting for both internal management purposes and external reporting needs.
Notice to Reader financial statements are typically about half the price of a review engagement or audit financial statement. These financial statements are considered “limited assurance engagements” or “non-audit services.” still, they need to include an opinion on the integrity of your company’s financial records.
Conclusion
We hope this article helps you understand the benefits of Notice to Reader financial statements. It’s easy to start, and you can quickly see how your books are doing. If you have any inquiries or concerns, get in touch with a qualified accounting firm.
