09/15/2026
If you are a nonprofit board member, you've likely reviewed your organization's financial statements. But do you know what they actually cover—or the level of assurance they provide?
A compiled financial statement is not an audit or a review. In a compilation engagement, an accountant prepares financial information using information provided by management. No assurance is provided.
Canadian compilation engagement standards require this distinction to be clearly communicated, helping board members and other readers understand what they can—and cannot—rely on.
For nonprofits using compiled financial statements for grant applications, donor reporting, funding requirements, or board decisions, that distinction matters.
You don’t need to be an accountant to provide effective financial oversight. But you should understand the type of financial reporting in front of you and know which questions to ask.
Is your nonprofit’s financial reporting meeting the needs of your board, funders, and donors?
Clearline CPA works with nonprofits and charities across British Columbia to make financial reporting easier to understand.
Learn more: https://www.clearlinecpa.ca/npos-and-charities/
