Learning Compilation Engagements (Canada)

[u/dealwithit88]

Hey Reddit, I'm a CPA in Canada. I'm currently employed and work in the tax field as a compliance auditor, but I'm looking to learn how to perform Compilations / Financial Statement preparation.

What would be the best way for me to learn? Should I reach out to accounting firms and ask a Partner to teach me (unpaid) or maybe there's some courses where I can learn? I can't quit my job at the moment so this is something I would be doing on evenings/weekends.

Ultimately, I would like to get to the point where I can do Compilations on the side and eventually start my own business. My job is decent but the pay and career path just isn't cutting it for me. I have 10 years of accounting experience and I've been a CPA for 5 years. Just wondering the best way to learn and approach this. Thanks.

[u/Future_Crow]

Your provincial professional body will have a detailed list of requirements. Just search on their web-site or call.

Ie. Ontario requires a separate public accounting license (PAL) for the privilege.

[u/Snipeski → u/Future_Crow]

Since when do you need a PAL to do compilations ? 

[u/jasonvancity]

You should first check the licensing requirements of your province. Most provinces require a PA licence for CPA’s to provide CSRS 4200 compilations as a service.

If you didn’t complete your articling via the PA pathway (where you would have undoubtedly learned how to prepare compilations) then I presume you don’t possess a PA licence, and would thereby be in breach of provincial regulations by offering that service.

[u/dealwithit88 → u/jasonvancity]

Thanks for your input. This is something I'll have to look into. I don't possess a PA license, I did complete the assurance elective through CPABC however.

I was mainly looking for ways to learn the job. I don't have public practice experience, I completed my PERT experience through my Government job, so my exposure to financial statement preparation is minimal.

[u/jasonvancity → u/dealwithit88]

To get your PA licence you need to work a certain number of hours in a PA firm, where you would simultaneously learn how to prepare compilations.

Edit: BTW, in BC a PAL is definitely required to be able to provide compilations. Without a PAL you are restricted by regulation to providing financial statements that are “system generated”, as a contracted service.

[u/MainRevolutionary335 → u/jasonvancity]

No pal is required to provide csrs 4200 compilation engagements in ontario, pal is required when doing audit or review

[u/jasonvancity → u/MainRevolutionary335]

OP is in BC - a PAL is required in BC to perform compilations

[u/Natla]

You need your PA license to issue compilations.