Audit & Assurance

Private corporations are generally not required to be audited by statute, but several scenarios trigger a mandatory audit: (a) distributing corporations (those with public debt or share offerings) under the Canada Business Corporations Act or provincial equivalents, (b) private corporations whose articles, shareholder agreement, or loan covenants require an audit, (c) most regulated industries (securities dealers, insurers, deposit-taking institutions), and (d) registered charities with annual receipts above provincial thresholds (e.g., Ontario requires audits for charities with revenue above $500,000). Many private corporations choose audits voluntarily for bank-financing covenants, prospective sale, or shareholder transparency, even when not legally required.

An Audit provides the highest level of assurance (a positive opinion that the statements present fairly under the applicable framework) and involves detailed testing, third-party confirmations, and substantive procedures. A Review provides limited assurance through analytical procedures and inquiries: the accountant concludes nothing came to their attention suggesting material misstatement. A Compilation (Notice-to-Reader) provides no assurance: the accountant simply assembles the information into statement format. Costs scale with effort: a typical Compilation might run a few thousand dollars; a Review two to four times that; an Audit often three to five times the Review cost depending on complexity, internal controls, and audit-history.

A typical small-business audit takes about 4-6 weeks from kickoff to finalization. The exact duration depends on how cleanly the books have been maintained. Well-reconciled accounts and on-hand supporting documents keep the audit on the short end of that range; gaps stretch it longer.

Yes. Sapere offers special audit engagements that test internal controls and management structure. We identify weaknesses in the control environment and provide written recommendations for improvement. This is run separately from the financial-statement audit and is often paired with one so management has a concrete plan to action for the next cycle.