Document background
The Compilation Engagement Letter serves as a crucial document in Canadian accounting practice, establishing the professional relationship between an accounting practitioner and a client requiring financial information compilation services. This document is required under Canadian Standard on Related Services (CSRS) 4200 when an accountant agrees to assist management in preparing financial information without providing any assurance on that information. The letter explicitly outlines that a compilation engagement differs from an audit or review engagement, details the responsibilities of both parties, and specifies limitations of the service. It's particularly relevant for small and medium-sized enterprises that need professional assistance with financial statement preparation but don't require an audit or review engagement. The Compilation Engagement Letter must clearly communicate the nature of the engagement and include specific disclaimers required by Canadian professional standards.
