C. L. Smith & Company

By: Christopher L Smith Professional  09-12-2011
Keywords: Financial Statements

The following are some of the services we provide to our clients:

Our role as independent auditor is to provide an objective third party opinion as to whether an organization's financial statements are fairly stated, within the limits of materiality.

Our audit procedures are rooted in Canadian Auditing Standards (CAS). We employ a risk based auditing approach, which involves gaining a thorough understanding of my clients and the environments in which they operate. We identify and assess a variety of business and fraud risks, and develop specific audit procedures based on the risk assessments.

Part of our audit examinations includes understanding and documenting the system of internal controls. We assess their effectiveness and in areas where we determine they are reliable, we may choose to rely on those controls, rather than engage in traditional substantive audit procedures. We also report to clients any controls that we find deficient or ineffective over the course of the audit.

Our role in a review engagement is to assess whether the financial statements are plausible under the circumstances, within the limits of materiality. Our review approach follows Canadian generally accepted review standards, and accordingly consists primarily of discussion, enquiry and analysis.

We work with our clients to gain an in-depth understanding of their businesses. We use this understanding to develop expectations for relationships between financial statement items, and prepare comparisons with prior year balances, expected norms and other relevant data. We then analyze actual results in comparison to our expectations and approach key personnel with enquiries regarding differences.

The review report provides a moderate level of assurance on the financial statements. A review report provides "negative" assurance, stating that nothing has come to our attention that would cause us to believe that the financial statements are not, in all material respects, in accordance with Canadian generally accepted accounting principles.

Compilation reports provide no assurance to the user. The main uses for compiled financial statements are for the filing of corporate tax returns and for management's own internal use where no assurance is required.

When executing a compilation, we obtain accounting records and other information from management and assemble the information in the form of financial statements. This normally requires the preparation of a number of year-end adjusting entries. The statements do not necessarily follow Generally Accepted Accounting Principles (GAAP), and many times accounting policy decisions are aligned with tax rules from the Income Tax Act and Canada Revenue Agency.

A compilation engagement is generally the first step in preparing a private company's corporate income tax return.

We offer planning and preparation services for both corporate and personal taxes, as well GST returns, assistance with payroll remittances, and the preparation of employee slips such as T4s and T5s.

Our goal in tax planning is to minimize the total taxes, while respecting the provisions of the Income Tax Act. We prepare various tax scenarios for owner-managers, and select plans with our clients that leave them with an optimal total tax bill.

Keywords: Financial Statements

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