What limited assurance means
In a review, the accountant asks questions about how you record transactions, looks at accounting practices and internal controls, discusses fraud risks and analyses the figures to see whether they look plausible. The conclusion is limited assurance, not an opinion that the statements are fairly presented, and not a statement that they are accurate.
This sits between the other two levels. A compilation involves no tests and no assurance, while an audit involves more testing and an opinion. The accountant’s report states what level of work was done, and the notes describe the assumptions behind the statements.
A simple illustrative example
Imagine a mid-sized Ontario company applying for a credit facility. The bank asks for accountant-reviewed statements. The accountant asks management about revenue recognition, how inventory and receivables are valued, and any unusual year-end entries, then compares this year’s figures with last year’s and with expectations. Any large unexplained change prompts more questions. The numbers are illustrative only.
The company is not paying for an audit of every transaction. It is paying for informed questions and analysis that give the lender more comfort than a compilation.
When a review is requested
A review may suit mid-sized or more complex businesses. A financial institution may ask for one before lending, an investor may ask for one before investing, and someone interested in buying the business may want one. Requirements can also come from a shareholder agreement or other contract, so check the wording rather than assuming a review is enough.
Because the work is more involved than a compilation, expect it to cost more and take more of your time. Having answers ready about unusual transactions makes the process smoother.
What to discuss with your accountant
Ask who is requiring the review and what exactly they need, since a lender may accept a review in some situations and insist on an audit in others. Ask which records and explanations the accountant will request, how long the process usually takes and what could change the level of work.
Reports on financial statements are produced by chartered professional accountants (CPAs) external to the business, so ask whether your accountant provides this work or can refer you. Bring reconciled accounts, supporting schedules for receivables, payables, loans and inventory, and notes on any one-time transactions.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- BDC: Audited, accountant-reviewed and notice-to-reader financial statementsBusiness Development Bank of Canada
- BDC: What are financial statements?Business Development Bank of Canada
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.