NPO Review Engagement Services in Ontario | Under $500K Revenue
By Bader A. Chowdry, CPA, CA, LPA | Insight Accounting CPA
Not-for-profit organizations (NPOs) in Mississauga, Toronto, the Greater Toronto Area (GTA), and across Ontario with annual revenue under $500,000 may not require a full audit but can significantly benefit from a review engagement. At Insight Accounting CPA, we provide professional review engagements tailored specifically for smaller NPOs, charities, and community organizations throughout Ontario.
Call (905) 270-1873 to discuss your NPO review engagement needs.
What is an NPO Review Engagement?
A review engagement provides a moderate level of assurance on your not-for-profit organization’s financial statements. Unlike a full audit, which provides high assurance through extensive testing and verification, a review engagement involves analytical procedures and inquiries that allow the practitioner to express limited assurance that the financial statements are free from material misstatement. For NPOs in Mississauga, Toronto, and the GTA with revenue under $500,000, this level of assurance often meets all regulatory and stakeholder requirements at a significantly lower cost than a full audit.
Review engagements for Ontario NPOs are conducted under Canadian Standard on Review Engagements (CSRE) 2400, which governs the practitioner’s responsibilities and reporting requirements. At Insight Accounting CPA in Mississauga, our Licensed Public Accountants are fully qualified to perform review engagements for not-for-profit organizations across Toronto, the GTA, and Ontario.
When Does an NPO Need a Review vs. an Audit?
Ontario’s Not-for-Profit Corporations Act (ONCA) and the Canada Not-for-profit Corporations Act (CNCA) establish thresholds that determine the level of assurance required for your organization’s financial statements. For NPOs operating in Mississauga, Toronto, and across Ontario, the key thresholds are:
- Revenue under $500,000 – a review engagement is typically sufficient unless your bylaws or funders require a full audit
- Revenue over $500,000 – a full audit is generally required under ONCA
- Soliciting corporations under CNCA – gross annual revenue over $250,000 triggers audit requirements
- Funder requirements – some government grants and foundation funding agreements require audited statements regardless of revenue level
Many smaller NPOs in Mississauga, Toronto, and the GTA choose a review engagement because it provides meaningful assurance to stakeholders, donors, and regulatory bodies while being more cost-effective than a full audit. Our team at Insight Accounting CPA helps NPOs across Ontario determine the appropriate level of assurance for their specific circumstances.
The Review Engagement Process
Step 1: Engagement Planning
We begin by understanding your NPO’s operations, funding sources, governance structure, and reporting requirements. For organizations in Mississauga, Toronto, and the GTA, we assess the specific regulatory framework applicable to your organization – whether you are incorporated under ONCA, CNCA, or a special act of the Ontario Legislature.
Step 2: Analytical Procedures
We perform analytical procedures on your financial statements, comparing current year figures to prior years, budgets, and industry benchmarks for similar NPOs in Ontario. These procedures help identify unusual fluctuations, trends, or relationships that may indicate material misstatement.
Step 3: Inquiries of Management
We conduct detailed inquiries of your board members, executive director, and finance staff regarding accounting policies, significant transactions, related party relationships, and any events occurring after the reporting period. For NPOs in Mississauga, Toronto, and across Ontario, these inquiries are tailored to the unique governance and funding structures of the not-for-profit sector.
Step 4: Financial Statement Review
We review your financial statements for proper presentation under Canadian accounting standards for not-for-profit organizations (ASNPO) as set out in Part III of the CPA Canada Handbook. This includes verifying that fund accounting, deferred contributions, capital asset policies, and restricted fund balances are properly presented.
Step 5: Review Engagement Report
We issue a review engagement report that provides limited assurance on your financial statements. This report is suitable for submission to regulatory bodies, funders, donors, and other stakeholders of your NPO in Mississauga, Toronto, the GTA, and Ontario.
Applicable Standards
- CSRE 2400 – Engagements to Review Historical Financial Statements. This is the primary standard governing review engagements for NPOs in Ontario.
- ASNPO (Part III CPA Handbook) – Accounting Standards for Not-for-Profit Organizations. These standards govern how your financial statements are prepared.
- CPA Code of Professional Conduct – Ethical requirements including independence that apply to all review engagements for Ontario NPOs.
Documents to Prepare
- General ledger and trial balance for the fiscal year
- Bank statements and reconciliations for all accounts
- Donation receipts and contribution records
- Grant agreements and funding letters
- Board meeting minutes for the fiscal year
- Payroll records and T4 summaries
- Accounts receivable and payable listings
- Capital asset register
- Deferred revenue/contribution schedules
- Prior year financial statements and review/audit report
- GST/HST returns filed during the year
Why Choose Insight Accounting CPA
- Licensed Public Accountants (LPA) authorized by CPA Ontario
- Extensive NPO experience across Mississauga, Toronto, the GTA, and Ontario
- ASNPO expertise – specialized in not-for-profit accounting standards
- AI-enhanced processes through our patent-pending Accounting Intelligence framework
- Ex-KPMG experience bringing Big Four quality at NPO-friendly rates
- Year-round advisory – not just during review season
Frequently Asked Questions
What is the difference between a review and an audit for NPOs?
A review provides limited (moderate) assurance through analytical procedures and inquiries. An audit provides reasonable (high) assurance through extensive testing, confirmation, and verification. For NPOs in Mississauga, Toronto, and Ontario with revenue under $500,000, a review is often sufficient and significantly less costly.
Can our donors and funders accept a review instead of an audit?
Most funders accept review engagement reports for NPOs under the revenue threshold. However, some government grants and foundation agreements specifically require audited statements. We recommend NPOs in Mississauga, Toronto, and the GTA check their funding agreements before deciding on the level of assurance.
How much does an NPO review engagement cost?
Review engagements are typically 40-60% less expensive than a full audit for NPOs of similar size. Contact us at (905) 270-1873 for a quote tailored to your organization in Mississauga, Toronto, the GTA, or anywhere in Ontario.
How long does a review engagement take?
A typical NPO review engagement takes 1-2 weeks from start to completion. Organizations in Mississauga, Toronto, and the GTA with organized records experience faster turnaround.
Can we upgrade from a review to an audit later?
Yes. As your NPO grows and approaches the $500,000 revenue threshold, we can seamlessly transition you from a review engagement to a full audit. Our team at Insight Accounting CPA in Mississauga supports NPOs across Ontario through every stage of growth.
Contact Us
Insight Accounting CPA is located at 4300 Village Centre Ct, Unit 100, Mississauga, Ontario L4Z 1S2. We serve not-for-profit organizations throughout Mississauga, Toronto, Brampton, Oakville, Hamilton, and all of Ontario.
Call (905) 270-1873 or visit our contact page. Learn more about our NPO audit services, charity audit services, and our team.
By Bader A. Chowdry, CPA, CA, LPA | Insight Accounting CPA | Mississauga, Ontario