Financial Statements

There are three kinds of financial statements. From compilations up to audits, they provide increasing levels of certainty about the accuracy of the information that they provide. They also get more expensive as you go up. I can help you decide what statements are best for you, based on a number of factors, but here’s a quick overview of the differences:

 1. Compilations

These financial statements are acceptable to Canada Revenue Agency, and to most banks and credit unions, if you aren’t carrying much debt.

 2. Reviews

These are the kind of financial statements that your bank or credit union will want, if you’ve got a large amount of debt.

 3. Audits

Audits are what companies that are listed on a stock exchange, or a municipality would have. They provide the greatest degree of certainty of all.  In BC, companies must have an audit, unless all the shareholders agree not to. This protects the rights of minority shareholders.

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