Who this is for
- Owners of Canadian corporations comparing quotes for year-end statements and a T2
- Owners whose lender asked for compiled statements and who want to know what to hand over
Not covered here
- What a compilation engagement report says and how it replaced the Notice to Reader
- Choosing between a compilation, a review and an audit for a lender
- What the T2 itself costs
- Monthly bookkeeping fees
- Provincial rules outside Ontario on who may issue the report
How much does a compilation engagement cost, and why is there no standard price?
No official source sets or publishes a compilation fee, so this page states no price or range. The fee follows the work. The main drivers are how finished the books are when they arrive, how many accounts there are, which statements and notes are asked for, who will rely on the result, and whether it is a first year or a new accountant (table below).
A quote for financial statements can cover three jobs: catch-up bookkeeping, the compilation, or only the statement information the T2 needs. Before comparing prices, check whether anyone will ask for a compilation (the CRA's T2 pages do not list one) and whether the quote prices each job as its own line.
A compilation engagement is an accountant compiling statements from information that management supplies. The report gives no audit opinion, review conclusion or assurance (O. Reg. 324/21, section 4). For what the report says and how it replaced the Notice to Reader, see Compilation engagement report: what replaced Notice to Reader.
A corporation's case is not simple if:
- You hold a quote for year-end statements plus the T2 that does not name the report, the statements, the period or the basis, or a lender asked for "financial statements" without naming a level.
- Bank accounts are unreconciled or expenses are uncategorized. That cleanup is bookkeeping, a separate piece of work from the compilation; see Catching up on overdue books.
- A lender, buyer or franchisor may want a review or an audit instead, or not every shareholder has consented to skip the statutory audit; see Compilation or review engagement.
- The corporation holds an investment account, US-dollar accounts or a shareholder loan with no schedule.
- Several year-ends are unfinished or corporate returns are unfiled; see Catching up on unfiled corporate returns.
Before asking for quotes, gather an adjusted trial balance (every account's year-end balance after your year-end entries), bank reconciliations, last year's statements and filed T2, loan agreements, and the lender's request in writing.
What am I paying for in a compilation engagement?
You pay for the accountant's work on your records, not for a check of them: management answers for the accuracy and completeness of what is supplied, and the accountant is not required to verify it (O. Reg. 324/21, section 4). The standard, CSRS 4200 (the Canadian compilation standard), still sets required work and documentation, acceptance steps when a third party will use the statements, and a note on the basis of accounting, the set of rules the numbers follow (AASB). Each is time on your file.
Printouts from bookkeeping software with no communication included or attached fall outside the standard (AASB).
Does my T2 need a compilation at all?
The CRA's T2 pages do not list a compilation as a filing requirement. They ask for financial statement information in GIFI form (the CRA's standard codes for statement lines) at the detail of a traditional statement, and for Schedule 141 (the T2 schedule that asks who was involved in preparing the financial information) even if there are no notes (CRA). Its Schedule 141 page says to include any notes and the auditor's or accountant's report, if they were prepared (CRA). The report level is set by others.
| Who | What it can require |
|---|---|
| CRA | GIFI statement information and Schedule 141. The pages above name no report level. |
| Federal corporation | Directors place comparative annual statements before shareholders (section 155). They follow Canadian GAAP and include at least a balance sheet, an income statement, a statement of changes in equity or retained earnings, and a statement of cash flows or of changes in financial position (section 71, section 72). A corporation that is not a distributing corporation appoints an auditor each year unless all shareholders, including non-voting ones, consent to dispense with one; that consent lasts only until the next annual meeting (section 163). |
| Ontario corporation | Directors place current-period statements before shareholders; the preceding year is required only of an offering corporation (Business Corporations Act, section 154). They follow the Handbook standards and include at least a balance sheet, a statement of retained earnings, an income statement and a statement of changes in financial position (Reg. 62, sections 40 and 42). A corporation that is not an offering corporation is exempt from the audit for a financial year only if all shareholders consent in writing for that year (section 148). |
| Other provincial corporation | Its own incorporation statute. |
| Lender, buyer or franchisor | Whatever its own terms set. |
The prescribed compilation report names a balance sheet, a statement of income and retained earnings and a note on the basis of accounting (O. Reg. 324/21, section 4). Whether compiled statements meet the corporate-law sections above depends on the basis and the statements included. If shareholders will receive them, say so at the start and ask which basis and which statements the engagement covers.
Whether an auditor is needed, or shareholders can waive one, is in Compilation or review engagement. For the statements the T2 itself needs, see Year-end financial statements for a corporation.
What drives the compilation engagement fee?
The fee follows the amount of work on your file. The table shows what changes that work and what you control.
| Driver | Why it changes the work | What you control |
|---|---|---|
| State of the books | Unreconciled accounts mean a trial balance has to be built first. That is bookkeeping, a separate piece of work from the compilation. | Reconcile before the engagement starts. |
| Accounts and kinds of items | Each bank, card, loan and investment account is a balance to check. A US-dollar item is shown in the currency the statements use, so each one is a conversion to check. | Hand over one statement per account, reconciled. |
| Statements and notes | The prescribed report covers a balance sheet, a statement of income and retained earnings and the basis note. A cash flow statement or further notes are more work, and a federal or Ontario corporation's statements for shareholders include a cash flow or changes-in-financial-position statement (see above). | Ask the recipient exactly what it needs. |
| Comparative year (last year's figures shown beside this year's) | A federal corporation's annual statements go before shareholders with the preceding year alongside, unless the reason for omitting it is stated (section 155). Where it applies, last year's figures must be ready and agree. | Hand over last year's statements and filed T2. |
| Basis of accounting | The note names the basis applied. More accruals mean more to record. | Agree the basis before work starts. |
| Who relies on it | A third-party user triggers specific acceptance steps (AASB). | Name the lender or buyer up front. |
| First year or new accountant | A new corporation has no prior-year closing balances to tie to. An accountant new to the file has more to learn about the records. | Hand over incorporation papers and opening balances. |
Is the statements fee separate from the T2 fee?
Yes, they are separate pieces of work that share inputs. The T2 asks for the statement information in GIFI form and does not list a compilation report (CRA).
One accountant can do both. The quote should still show the statements (the compilation) and the T2, with its GIFI schedules and Schedule 141, as separate lines. For the T2 fee and how to read that quote, see T2 cost and quotes.
How do I reduce the work: what to hand over and in what shape?
First ask any lender or buyer in writing which report it wants; the CRA's T2 pages mention an accountant's report only if one was prepared. For a federal or Ontario corporation, also keep each year's shareholder consent to skip the audit with the corporate records; without it, the statute calls for an audit. Then hand over finished records in the shape the accountant ties to. There is less to build and fewer questions to ask.
| Hand over | Shape |
|---|---|
| Adjusted trial balance | Year-end balances that match the books. |
| Bank and card reconciliations | Each account reconciled to its statement at year-end, with differences explained. |
| Last year's statements and filed T2 | Opening balances equal last year's closing balances. |
| Loan statements and agreements | Balances agree with the lender's records. |
| Shareholder loan schedule | Advances and repayments in date order, with a closing balance. |
| Payroll and GST/HST filings | Totals agree with what was filed. |
| Investment statements | Year-end values and activity, with US-dollar items marked. |
| The recipient's request in writing | Which report level, which statements, which basis, which period. |
If the books are not there yet, see Catching up on overdue books and the year-end close checklist.
What changed from "Notice to Reader", and will my lender accept the compilation engagement report?
Your lender decides what it accepts, so ask it in writing which report level it wants. The report gives no assurance and warns that the information may not suit a reader's purposes (O. Reg. 324/21, section 4). If the lender wants a review, the work and the fee are different; see Compilation or review engagement.
In Ontario, for periods ending on or after December 14, 2021, the compilation engagement report is the prescribed notice for the licensing exception below; earlier periods could use either notice (O. Reg. 324/21, section 2). The compilation standard, CSRS 4200, takes effect for the same periods and brings a new report in place of the Notice to Reader (AASB). The change and the report's wording are in Compilation engagement report: what replaced Notice to Reader.
Does my province change who may issue the report?
In Ontario, a compilation that carries the prescribed compilation engagement report is outside public accounting, so issuing it needs no public accounting licence under the Act; a review or audit that a third party can reasonably be expected to rely on generally does. Other provinces have their own rules; ask the accountant which rules the report follows and confirm with the provincial CPA body.
The Act's terms: compilation services provided independently of the client are public accounting, which needs a licence, when a third party can reasonably be expected to rely on or use them. They are not public accounting when the compilation carries the prescribed notice limiting the person's assurance to the accuracy of the computations (sections 2 and 3). A person who is not licensed cannot recover charges made as a public accountant (section 37), a rule that reaches only work that is public accounting. Bookkeeping needs no licence (section 3(3)(a)). Nor does preparing financial statements solely as part of tax returns, if the person offers no opinion independent of the taxpayer on the statements or the returns, or no other service requiring a licence (section 3(3)(b)).
What should a compilation quote spell out so I can compare two accountants?
Two quotes compare only when the same lines are priced. Look for these.
| Line | Why it matters |
|---|---|
| The service named: a compilation engagement under CSRS 4200 (the Canadian compilation standard), with the report | "Financial statements" alone could mean printouts or a different level of work. |
| The statements, period and basis of accounting | Cash flow, a comparative year and extra notes are added only if listed. |
| Who will receive the statements | A named lender or buyer changes the acceptance steps. |
| Bookkeeping cleanup, priced apart | Reconciling and categorizing is separate from compiling. |
| GIFI, Schedule 141 and the T2, priced apart | The T2 is separate work. |
| What you supply and by when | The quote assumes finished records. |
| What happens if the recipient asks for more | A different statement set or a review is a different job. |
| Who signs, and what licence or membership they hold | In Ontario, a compilation with the prescribed report needs no public accounting licence (see above); elsewhere, ask which rules the report follows. |
Example
Illustrative figures in Canadian dollars. No fees are shown: no official source publishes them.
Finished books
An owner-managed corporation has revenue of C$400,000. The books are reconciled monthly and arrive with an adjusted trial balance, last year's statements and the filed T2. A bank asked for compiled statements. The accountant compiles from finished records, so the quote can be two lines: the compilation and the T2.
A year of unreconciled bank activity
The same corporation has a year of bank activity that is unreconciled and expenses that are uncategorized. The report is identical, but the work is not. The quote should split three lines: reconciling and categorizing, the compilation, and the T2. The first line is bookkeeping catch-up; see Rebuilding books from bank statements.
A holding corporation with investments
A holding corporation has a C$300,000 investment account and some US-dollar items. It may have more accounts and currency conversion to check than an operating corporation of the same size, and extra notes add work if the recipient asks for them. The quote should price the investment reconciliation separately. See Investment account inside a corporation.
Different for you?
- You have a quote you cannot judge, or a lender asked for compiled statements: the questions to settle first are the report level, the lines the quote should carry and what to hand over; see corporate tax and year-end help.
- The books are not reconciled or years are behind: start with Catching up on overdue books; for help finishing them, see bookkeeping help.
- A lender wants a review or an audit: read Compilation or review engagement.
- Your corporation has unfiled years: see Catching up on unfiled corporate returns and corporate tax and year-end help.
- The corporation has a US shareholder, a US account or US-dollar income: two-country questions change the records; see cross-border tax help.
- You want the T2 fee on its own: see T2 cost and quotes.
- You are weighing monthly bookkeeping or year-end only: see Bookkeeping cost per month and Year-end only or monthly bookkeeping.
- You are unsure whether you need a bookkeeper, an accountant or a CPA: see Bookkeeper, accountant or CPA.
- You are outside Ontario: this page covers Ontario's rules only. The report wording and who may issue it are questions for your accountant and the provincial CPA body; for help with a quote or a lender's request, see corporate tax and year-end help.
Figures on this page
| Figure | Value | Source |
|---|---|---|
| Compilation engagement report required for periods ending on or after Ontario: for compiled financial information for periods ending before this date the Notice to Reader or the compilation engagement report may be used; on or after it, the compilation engagement report | December 14, 2021 | Ontario: O. Reg. 324/21, Public Accounting Services, section 2 Checked |
Primary sources
- Ontario: O. Reg. 324/21, Public Accounting Services
- Ontario: Public Accounting Act, 2004
- Ontario: Business Corporations Act, sections 148 and 154
- Ontario: R.R.O. 1990, Reg. 62 (General), sections 40 and 42
- CRA: Preparing your financial statements using GIFI
- CRA: What is Schedule 141
- Canada Business Corporations Act, section 155
- Canada Business Corporations Act, section 163
- Canada Business Corporations Regulations, 2001, section 71
- Canada Business Corporations Regulations, 2001, section 72
- AASB: Update on the new standard on compilation engagements
About this guide
Published by Cloud Accounting under standing professional approval. This version has no separately recorded personal review. It explains general rules for the tax year shown. It is not advice for your situation.
Changes
- : First published.