Over the years, the CICA has published guidance to help readers understand the various reports that may accompany financial statements. The 2010 version of the Guide states that: "Chartered Accountants are valued for their integrity and
proven financial expertise. The CA’s signature on an audit report means that the
CA has conducted an examination of the organization’s financial statements, has
expressed an informed opinion on the fairness of the financial information, and
can provide reasonable assurance on the presentation of the organization’s
financial position, performance and cash flows."
It is important to note, however, that not all financial statements are audited. Many small organizations do not require an audit. Their reporting needs can be met in other ways — through reviews or compilations. Whether the CA is required to perform an audit, a review or a compilation those who read financial statements and the accompanying communication can be confident that the engagement was conducted with the utmost integrity and professionalism.
Chartered Accountants provide three levels of service with respect to communications on financial statements — an audit, a review or a compilation. These services are conducted in accordance with relevant ethical requirements that are set out in Rules of Professional Conduct/Codes of Ethics applicable to the practice of public accounting issued by the various accounting bodies. These Rules/Codes apply to the services provided by public accountants and generally cover the fundamental principles of professional ethics.
To learn more, download the 16-page Guide titled Understanding Reports on Financial Statements.
