Example-Notice To Reader

To (person engaging the public accountant)

1We have compiled the balance sheet of ............................... as at ..................., 19... and the statements of income, retained earnings and changes in financial position for the (period) then ended from information provided by management (the proprietor). 2We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. 3Readers are cautioned that these financial statements may not be appropriate for their purposes.

City

Date

(signed).............................

CHARTERED ACCOUNTANTS

EXPLANATORY NOTES

1. Nature Of Assignment-What work was done is clearly specified (ie. compiled the statement from information supplied by management or the proprietor).
2. Scope Limitations-It is clearly stated that the work is limited and that the engagement is not an audit or review to verify the accuracy or completeness of the financial information. There is no form of assurance expressed on the financial statements.
3. Caution To Readers-Since it is management or the proprietor, not the Chartered Accountant, who determines the distribution of the statement, it is necessary that a caution to readers be communicated to inform others who may use the statement that the statements may not be appropriate for their purposes.

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