Audit & Assurance Services Services d'Audit et d'Assurance

When Independent Assurance Is Required

Private corporations in Canada are not universally required to obtain independent audits. However, several circumstances make independent assurance services either legally required or commercially essential: shareholder agreements that mandate annual audit, lender covenants that require audited financial statements as a condition of credit facilities, regulatory requirements applicable to certain industries, and the due diligence requirements of prospective acquirers or investors.

Audit, Review, and Compilation

Canadian auditing standards recognize three levels of assurance engagement. An audit provides the highest level of assurance, with the auditor expressing an opinion that the financial statements present fairly in all material respects. A review engagement provides moderate assurance based on inquiry and analytical procedures, without the detailed testing of an audit. A compilation engagement involves the preparation of financial statements from information provided by management, without any assurance.

St. Lawrence Gate advises clients on the appropriate level of assurance for their specific circumstances — which is not always the highest level available and not always the lowest level acceptable.