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Notice to Reader Financial Statements: Canada

Trustworthy Financial Insights with NTR Accounting Statements!

Navigating the world of finance just got easier. Our expert accountants bring you precise, concise, and compliant Notice to Reader (NTR) financial statements. Get the insights you need without the complexity of audits or reviews.

Home arrow Notice to reader financial statements: Canada

Service Overview

A number of financial operations that might have an impact on a business call for notice to reader financial statement. A Notice to Reader financial statement may be needed for a variety of reasons, including year-end reporting to shareholders, investor outreach, and bank loan applications. What advantages do notice to reader financial statements offer your company? You can get assistance from a CPA accountant in choosing the finest kind of financial statement for your business.

What is Notice to Reader Statement?

Notice to Reader Report

A compilation report, or Notice to Reader Report, is a particular kind of financial statement used by corporations. It is a collection of accounting firms' and management's prepared financial statements.

It's important to note that a NTR accounting report does not guarantee the accuracy of the financial accounts. From the viewpoint of shareholders, investors, directors, and other parties having a stake in a corporation, it is intended to create a level of trustworthiness for the company. A company must seek review engagement or audited financial statements if it wants more detailed financial information.

Even so, a business financial statement given by an uncertified bookkeeper utilizing internal accounting software is still quite likely to be significantly inferior to a notice to reader financial statements Canada. The stringent requirements of the Chartered Professional Accountant designation are applied to an accountant's Notice to Reader report.

Why Are Notice to Reader Financial Statements Needed?

NTR financial statements can be used to satisfy criteria or establish credibility in a variety of circumstances.

Annual reporting to the owner: Even though it might not be necessary, a company owner or shareholder might desire a formal NTR created for their own purposes or to add to the board meeting minutes in their corporate binder.

Bank loans and creditors: Banks and creditors frequently want an notice to reader financial statements in order to assess a company's creditworthiness before lending or extending credit.

Investors: Investors in start-ups or smaller enterprises may only require a Notice to Reader, but the majority of investors in corporations will demand reviewed or audited financial statements.

Selling a business: To conduct their due diligence when buying a business, potential buyers will request to view NTR's financial statements from the previous three to five years. Financial statements that have been reviewed or audited will likely be needed for larger business transactions that exceed $5 million.

Filing income taxes: To make sure you don't overpay taxes as a result of overstated income, an accountant can write a ntr financial statements during year-end income tax filing.

Components of an NTR in Canada: A Notice to Reader financial statement is constructed differently from other CPA-prepared financial statements in terms of both how it is put together and the parts that go into it. There are three primary components to a Notice to Reader report.

Assignment nature: The report needs to be very clear about what kind of work the accountant is expected to do. The accountant must say that the assembled financial statements were created using data supplied by the company's management or owners and that no audit or review of the statements was performed. This is done in order to distinguish it from other kinds of financial statements and to warn the user against taking the report's findings as being completely validated.

Limitations on scope: Users are informed by the scope constraint that there is no assurance conveyed in the financial statements.

Reader discretion: The compilation of financial statements ought to clearly disclose under the "Notice to Reader" heading that it might not be suitable for the user's needs. The amount of caution that should be given to readers regarding the report's credibility must be made crystal clear.

Who can sign a notice to the reader?

An external chartered accountant must sign a notice to reader financial statements canada. A business must hire an outside CPA (Chartered Professional Accountants) to draft and sign a Notice to Reader even if it has an advanced internal financial or accounting team.

It's a prevalent misperception that internal personnel may create financial statements notice to reader using accounting software. Balance sheets, cash flow statements, and income statements can be generated by accounting software for your assessment, but they are not considered Notice to Reader statements.

What is the Notice to Reader Cost for Preparation?

Depending on the business, different accountants charge different rates for producing ntr financial statements. Since only a chartered accountant can make these, there will always be a fee. It will cost more for an accountant to create a Notice to Reader statement for several years' worth of financial information at once than for just one year. Similar to how a start-up or small business will incur lower preparation costs, a larger company will incur higher costs.

Due to the level of scrutiny and verification needed for these kinds of financial statements, a Notice to Reader will normally have a lower rate than a review engagement or audited review statement.

Whether or not they are necessary at the time, it is always advised to speak with your accountant to determine how frequently they should write Notice to Reader statements in order to save time and money in the long run.

How Does the Process Work?

How to Prepare a Notice to Reader Financial Statement?

Typically, chartered accountants produce Notice to Reader statements at the end of a company’s fiscal year, usually December 31st.

To develop NTR reports, the accountant-CPA team typically needs the following files and follows these procedures:

  • Getting the trial balance, which is a list of all the transactions entered into accounting software,
  • Examining the company's accounts for any potential errors or missing information
  • making plans to repair errors or omissions in journal entries, such as incurred costs, taxes, or fixed asset depreciation.
  • Combining accounts for which adjusting entries have already been made
  • Making year-end corporate tax returns using the Notice to Reader statements
  • Adding the final adjustment item for the tax return to the NTR report and distributing the Notice to Reader to the appropriate parties

What sets Global FPO apart as an NTR provider?

Proven Expertise: With years of experience, our licensed accountants excel in NTR services, guaranteeing accuracy and compliance.

Tailored Solutions: We create NTR statements that are in line with your unique requirements and provide insightful information related to your company.

Unwavering Integrity: You will receive NTR financial reports that have been created with the utmost professionalism thanks to our adherence to ethical standards.

Timely Delivery: Rely on us for prompt NTR statements so you can easily fulfill crucial financial deadlines.

Cost-Effective Excellence: Improve your financial management by making use of high-quality NTR services at affordable prices.


frequently asked questions


Notice to Readers Financial statements are priced at least at $2,500, while the exact cost varies based on the services offered. These statements differ from audit and review engagements in that they don't offer any assurance and merely list the papers the client will supply to the accountant (CPA) and the services they will render.


No, a Notice to Reader can only be prepared by a licensed accountant or CPA.


When an accountant (CPA) accepts financial statements/documents from a customer, this is referred to in accounting as an NTR, also known as a compilation engagement. The financial accounts presented are unaudited, which means there may be inaccuracies, according to a report called the Notice to Reader that is included with the aforementioned materials.


Yes, financial statements can be created by non-CPA accountants, but only CPAs may create audited financial statements.

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