Audit, Review & Compilation Engagement CPA Ontario

By Bader Chowdry, CPA, CA, LPA · Last updated May 3, 2026 · 7 min read

Quick answer: Under Ontario’s Public Accounting Act, 2004, only Licensed Public Accountants (LPAs) can sign audit reports — and fewer than 20% of GTA-area CPAs hold the LPA designation. Insight CPA is a registered LPA firm. We deliver audit (CAS), review (CSRE 2400), and compilation (CSRS 4200) engagements across SMBs, non-profits, condo corporations, career colleges, mortgage brokerages, real estate brokerages, travel agencies, and other regulated entities. Bader Chowdry has signed audit reports for 30+ regulated industry compliance audits.

Why the LPA license matters in Ontario

The Public Accounting Act, 2004 (Ontario) restricts the signing of audit and review engagement reports to Licensed Public Accountants. A CPA designation alone is NOT sufficient. The LPA is a separate license requiring 2,500 hours of CPA Canada-supervised audit experience plus passing the LPA module of the CPA Canada Accreditation Program.

Most GTA CPA firms cannot legally sign audit or review engagement reports for their clients. They either decline these engagements entirely, or refer them out to LPA firms. This creates a gap that Insight CPA fills directly — Bader is licensed to sign audit reports under the Public Accounting Act.

Audit vs Review vs Compilation — which does your business need?

• Audit (CAS — Canadian Auditing Standards): Highest assurance. Required for: regulated industries (FSRA, OSC, RECO, TICO, MLTC, RHRA, PCCA, CICC), bank loan covenants over a threshold, public sector grant compliance, condo corporations above revenue thresholds, charities with $250K+ revenue (T3010 audit). Fee range: $8K-$25K+ depending on complexity.
• Review (CSRE 2400 — Canadian Standards on Review Engagements): Moderate assurance. Required for: bank line-of-credit renewals, smaller charities, certain franchise compliance, smaller condo corps. Fee range: $4K-$10K.
• Compilation (CSRS 4200 — Canadian Standards on Compilation Engagements): No assurance. Notice to Reader. Sufficient for most internal management reporting and CRA T2 corporate filings where no audit is mandated. Fee range: $1K-$3K.

Specialized regulatory audits we sign

• Audited Financial Statements for Ontario Career Colleges (CAS 805) — PCCA niche
• Cryptocurrency Exchange & Dealer Audit (OSC Ontario)
• Licensed Cannabis Producer Financial Audit (Health Canada Compliance)
• Licensed Child Care Centre Financial Audit (CCEYA Ontario)
• Long-Term Care Home Financial Audit (MLTC Ontario)
• Insurance Brokerage Financial Audit (FSRA Compliance)
• Mortgage Brokerage Annual Audit (FSRA MBLAA)
• Real Estate Brokerage Trust Account Audit (RECO Ontario)
• Travel Agency Trust Account Audit (TICO Compliance)
• Law Firm Trust Account Audit (Law Society Ontario)
• First Nations & Indigenous Community Financial Audit
• Public Sector Compliance Review & Value-for-Money Audit (Ontario gov)
• Municipal & Local Government Financial Audit
• Condo Corporation Annual Audit Services
• Construction Company Audit for Surety Bonding
• Charity Audit for CRA T3010 Filing

“The LPA license is the bottleneck. Most GTA CPAs aren’t licensed public accountants — they can’t legally sign these audit reports. We can.” — Bader Chowdry, CPA, CA, LPA

When to upgrade from compilation to review

Bank lenders increasingly require review-engagement (CSRE 2400) financials at $1M+ in business revenue or before approving line-of-credit renewals over $250K. Upgrading is a 6-week engagement: we identify any account-level misstatements during initial procedures, recommend any pre-engagement adjustments, then deliver review-quality financials.

When to upgrade from review to audit

Most Ontario regulators require full audit (CAS) above specific revenue or asset thresholds. NPOs/charities: T3010 audit required at $250K revenue. Condos: audit required by the Condominium Act 1998 above prescribed thresholds. Professional regulators (FSRA, OSC, RECO, etc.): annual audit required for license renewal regardless of revenue.

Frequently asked questions

1. What’s the difference between an audit, review, and compilation? Audit = highest assurance (CAS). Review = moderate assurance (CSRE 2400). Compilation = no assurance, just compiled per management’s records (CSRS 4200). Audit and review reports must be signed by an LPA. Compilation can be done by any qualified accountant.

2. Why is an LPA license required for audit work in Ontario? The Public Accounting Act, 2004 restricts the signing of audit and review reports to Licensed Public Accountants. The LPA is a separate license from CPA — requires 2,500 hours of CPA Canada-supervised audit experience plus the LPA module.

3. How much does an audit cost in Ontario? Range: $8K-$25K+ depending on complexity, industry, regulatory framework, and entity size. Career college and regulated brokerage audits typically $10K-$18K. Condo audits $5K-$15K. Charity T3010 audits $4K-$12K.

4. How long does an audit take? Pre-audit planning: 2-3 weeks. Field work: 2-4 weeks. Reporting + management review + final sign-off: 2-3 weeks. Total: 6-10 weeks for typical SMB audit.

5. What if my existing accountant isn’t an LPA? Insight CPA frequently accepts handoff engagements from non-LPA accountants. We coordinate directly with your existing accountant on prior-year financials, then take over the audit independently. Common path for businesses that need audit/review for the first time.

About the author

Bader Chowdry, CPA, CA, LPA is a Licensed Public Accountant under the Public Accounting Act, 2004 (Ontario). He has signed audit reports for 30+ regulated industry compliance audits across PCCA, FSRA, OSC, RECO, TICO, MLTC, RHRA, CCEYA, condo corporations, charities, and not-for-profits.

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Insight Accounting CPA Professional Corporation is a Licensed Public Accountant under the Public Accounting Act, 2004 (Ontario). The compliance and audit information in this article reflects regulatory requirements current as of May 3, 2026. Engagement-specific advice requires a formal engagement letter; this content is not a substitute for that engagement.