Accountant’s Report

Jurisdiction: Country: Canada | Province or State: Alberta

What is an Accountant’s Report?

An Accountant’s Report is a formal statement prepared by an independent, Alberta‑licensed accountant. It confirms specific financial information about your business over a defined period. The report often focuses on whether your records comply with set rules. It can relate to trust accounting, client funds, or other regulated financial activities. It may also confirm that your books match bank statements and that you keep proper records.

This is not the same as a full audit of your financial statements. An Accountant’s Report usually covers targeted procedures. The scope depends on what the recipient asks the accountant to check. That recipient could be a regulator, lender, investor, grantor, or buyer. The accountant follows a set of agreed procedures and then reports the results. In some cases, the report contains an opinion. In other cases, it lists factual findings without an opinion. The form and wording are often prescribed.

Who typically uses this form?

Law firms, brokerages, and other firms that handle client money use it. So do not‑for‑profits, construction businesses, property managers, and healthcare practices that hold funds in trust. Any Alberta business that must prove compliance with money‑handling rules may need it. Owners seeking financing or investors may also need this report to close a deal.

Why would you need this form?

You may need to confirm your trust accounting practices each year. You may need it to renew a license or maintain registration. You may need it to satisfy loan covenants or grant conditions. If you plan to sell your business or bring in partners, the buyer or partner may ask for it. The report offers assurance from a qualified third party. It reduces risk for the recipient and builds confidence in your records.

Typical usage scenarios

• A law firm with a pooled trust account files an annual report confirming client balances and bank reconciliations.
• A real estate brokerage confirms that trust deposits are intact and promptly deposited.
• A contractor confirms that holdbacks are tracked and restricted funds are used properly.
• A charity confirms that funds were spent on eligible activities during a grant period.
• A company seeking a loan confirms that its internal controls over cash are functioning.

In each case, the report targets specific requirements and covers a defined period.

When Would You Use an Accountant’s Report?

You use an Accountant’s Report when a third party needs reliable confirmation about your financial records or controls. If your business holds client money, you likely face annual reporting duties. The report proves that you followed the rules, kept proper ledgers, and reconciled accounts monthly. It also shows that client balances match bank balances after accounting for outstanding items.

You may also use this report during key events. If you open or close a trust account, you may need a report to confirm the closing position. If your firm changes structure or ownership, the regulator may ask for a special report. If you move banks or change accounting systems, a report can document the transition and confirm no funds were lost. If you suffered a fraud, you may need a report to confirm the extent and corrective steps.

Lenders and investors often request an Accountant’s Report. It helps them verify covenant compliance and the strength of your cash controls. If you operate with tight working capital, the report can support increases to your credit limit. If you seek to raise capital, the report can support due diligence. Buyers in a transaction may ask for a report on trust accounts, payroll liabilities, or sales tax reconciliations.

Public and community funders may require a report. If you receive grants or operate with restricted funds, you may need to show that you used the funds as intended. The report may tie expenditures to approved budgets and confirm unspent balances. It can also confirm that you segregated restricted funds from general operations.

Who typically uses this form?

• Managing partners, owners, and compliance officers request it.
• Controllers and bookkeepers gather the records and work with the accountant.
• Lawyers, brokers, and property managers sign management acknowledgements.
• The independent accountant completes the report and signs it.
• The final recipient is the regulator, lender, investor, funder, or buyer who relies on the report.

Legal Characteristics of the Accountant’s Report

An Accountant’s Report is a formal assurance or compliance document. It becomes legally significant because others rely on it to make decisions. It is not a commercial contract by itself. But it carries legal weight through your obligations and the accountant’s professional duties. If a statute, license, loan agreement, or grant condition requires the report, you must provide it on time and in the required form.

Is it legally binding? The report includes certifications and an accountant’s signature. You typically sign a management acknowledgement that confirms your responsibility for records and controls. The accountant signs a statement that describes the scope of work and the conclusion. Both signatures carry legal consequences. Misstatements can trigger regulatory action, civil claims, or other remedies. The engagement letter between you and the accountant sets terms, responsibilities, and limits on liability. Combined with the form itself, this framework makes the report enforceable in practice.

What ensures enforceability?

Independence matters. The accountant must be objective and free of conflicts. The report must follow applicable Canadian assurance principles for the selected engagement type. The accountant must be licensed to practice in Alberta. The scope must align with the requirements in the form. The report must include mandatory wording, dates, and signatures. The schedules must reconcile and support every number in the form. When those elements align, the recipient can rely on the report with confidence.

General legal considerations include the scope and limitations. The report covers only the period stated and the procedures described. If the accountant notes exceptions, those appear in the report or attached schedules. The report may include emphasis paragraphs or reservations. You should read any reservations closely and address them. The report may include recommendations. These are not binding, but ignoring them can create risk. You should also consider privacy and confidentiality. You must protect client personal information and banking data. Ensure you have consent and a secure transfer process for records.

Retention is another consideration. Keep the signed report and all schedules for your policy retention period. Align that period with your license, tax, and civil limitation requirements. If your business moves or closes, ensure you can still access the records. If there is a dispute or investigation later, complete and accurate files will help.

How to Fill Out an Accountant’s Report

You want to complete the form correctly on the first try. Here is a practical, step‑by‑step approach for Alberta.

Step 1: Confirm the purpose and reporting period

• Clarify why the report is required and who will rely on it. Identify whether it is an annual filing, a special purpose filing, or a lender request. Confirm the start and end dates for the period. Note any opening balances that must agree to the prior report. If the form has a version date, ensure you use the current version.

Step 2: Identify the parties

• Enter the legal name of your business as it appears on registrations. Include any trade names if the form requests them. Provide your Alberta business address and contact details. Identify the responsible officer, partner, or director who will sign on behalf of your business.
• Identify the independent accountant. Include the firm name, contact, address, and license information. Confirm that the accountant is independent and qualified to sign in Alberta. If the form asks for a registration or license number, add it exactly as it appears on official records.
• If a third‑party recipient is listed on the form, enter the exact name they require. Use their reference numbers or file identifiers if provided.

Step 3: Describe your business and accounts covered

• State your business type and activities. If the report concerns trust money, list each trust account. Identify the bank, branch, transit number, and account number. If you hold multiple trust accounts, list them all. If you use interest‑bearing pooled accounts, identify the interest disposition. If the form asks, list the general operating account used for trust transfers.
• If the report is not about trust accounts, describe the specific scope. For example, specify payroll accounts, grant funds, or restricted cash accounts. Align the description with the procedures the accountant will perform.

Step 4: Confirm records and internal controls

• Provide a short summary of your record‑keeping system. State the accounting software, if requested. Confirm you maintain a separate client ledger for each client or matter when trust money is involved. Confirm monthly bank reconciliations for each relevant account. State who prepares reconciliations and who reviews them. If the form asks, identify control procedures such as dual signatures, deposit timeliness, and transfer approvals.
• If you changed systems or banks during the period, note the change and the effective date. If there were any control issues, disclose them factually. Your accountant will test them and report any exceptions.

Step 5: Gather core supporting documents

• Before your accountant begins, assemble complete records for the period. Include monthly bank statements for each account. Include all bank reconciliations with supporting lists of outstanding items. Include deposit slips, electronic deposit reports, and cheque images. Include trust receipts and disbursement journals. Include client ledger cards and summary listings. Include proof of interest allocation or remittance, if applicable. Include any regulatory forms filed during the period.
• For non‑trust reports, gather the records that align with the scope. For example, for a grant report, assemble budgets, invoices, approvals, and bank evidence. For a loan covenant report, gather trial balances, calculations, and supporting schedules.

Step 6: Complete management acknowledgements and representations

• Most forms include a management acknowledgement. You confirm responsibility for maintaining records and internal controls. You confirm the completeness and accuracy of information provided. You confirm that you disclosed any non‑compliance or known fraud. Read each statement carefully. Only sign if you agree. If a statement does not reflect your situation, discuss with your accountant. The wording is often prescribed. Your accountant can advise on how to address exceptions.

Step 7: Define the engagement scope with your accountant

• Agree on the procedures the accountant will perform. The form may dictate this. If not, set out the procedures in the engagement letter. Typical procedures include bank confirmations, test of reconciliations, and sample testing of transactions. The accountant may perform walk‑throughs of controls. The scope should be sufficient to support the report wording. Confirm timelines, deliverables, and access to staff.

Step 8: Let the accountant perform the work

• Provide secure access to records. Respond promptly to questions and requests. If the accountant finds discrepancies, resolve them before finalizing the report. Corrections may include posting missing entries, clearing stale‑dated items, or documenting transfers. If errors affect client funds or restricted funds, fix them fully and document the fix.

Step 9: Review anticipated findings and exceptions

• Ask for a draft list of findings before the report is finalized. If the accountant plans to note exceptions, understand the impact. Some forms permit a clean report only if there are no exceptions. Others allow disclosure of exceptions with explanations. Work with your accountant to correct issues where possible. If an issue cannot be corrected, prepare a clear response plan. Keep it factual and measurable.

Step 10: Complete the form sections

• Most Accountant’s Report forms include these sections. Fill each one carefully.
• Identification of the entity. Enter your legal name, address, and contact details. Match exactly to registrations and bank records.
• Reporting period. State the start and end dates. If a special report covers a transaction date, state that date and describe the event.
• Scope and purpose. Select the correct box or describe the purpose. Use the wording shown on the form. Examples include annual trust compliance, special closing report, or lender compliance report.
• Accounts and records examined. List the accounts covered. Identify the records and reconciliations the accountant reviewed. If asked, state the number of samples tested.
• Findings and exceptions. This section may be a checklist or narrative. If a checklist, answer each question accurately. If an exception exists, describe it concisely. Provide the amount, date, and resolution status.
• Accountant’s conclusion. The accountant will complete this part. It includes the description of procedures and the conclusion. It may be an opinion or a statement of factual findings. Do not edit this section without the accountant’s agreement.
• Management acknowledgement. You sign this to confirm your responsibilities. Read the exact wording. Ensure it matches the engagement. If you disagree with a statement, discuss with your accountant before signing.

Step 11: Prepare and attach schedules

• Complete all required schedules. These often include detailed reconciliations and listings.
• Bank reconciliation schedules. For each account, include a month‑end reconciliation for each month in the period. Show opening balance, deposits, disbursements, and closing balance. List outstanding deposits and cheques. Tie the book balance to the bank statement and client ledger listing.
• Client ledger listing. Provide a detailed listing of client or trust balances at the reporting date. The total must match the trust bank balance, adjusted for outstanding items. If dormant or negative balances exist, identify and address them.
• Transaction samples. If the form asks for samples, attach the list and evidence. Include deposit dates, sources, cheques, and approvals. Ensure documents are clear and legible.
• Interest and fees schedule. If the account earns interest, show how interest was handled. If bank service charges were charged to trust, provide authority and amounts. If interest was remitted to a designated recipient, show the calculation and remittance.
• Transfer register. If you transferred funds between trust and general, list each transfer. Show the client file, purpose, date, amount, and authorization.
• Exception remediation. If you corrected issues during the period, attach a short memo. Describe the issue, impact, fix, and date resolved. Keep it factual and concise.
• Label every schedule with the entity name, account, period, and page numbers. Cross‑reference totals to the main form. Totals must reconcile without rounding differences.

Step 12: Signatures, dates, and professional details

• Check signature blocks. One block is for your business. It must be signed by an authorized signatory. Include name, title, and date.
• One block is for the accountant. It must show the firm name and the individual who signs. Include the signing date, city, and license details if requested. Ensure the accountant dates the report after you sign your management acknowledgement. The accountant must date the report as of the final completion of procedures.
• Do not leave any signature or date blank. Use ink for physical copies. Use approved e‑signature tools for electronic filing if allowed. Ensure signatures match the printed names and titles.

Step 13: Final checks and filing

• Perform a final review. Confirm all names, dates, and numbers match across the form and schedules. Confirm the reporting period is correct. Confirm that totals reconcile and foot. Check that every required schedule is attached. Check that the accountant’s conclusion matches the selected scope.
• File the report by the deadline. Submit through the required channel. Keep a sent copy and proof of delivery. If the recipient issues a confirmation or receipt, save it. Diarize any follow‑up steps or next filing dates.

Step 14: Records retention and follow‑up

• Store the signed report and all backup securely. Restrict access to those who need it. Keep digital backups with encryption. Retain records for your required period. Align with your regulatory, tax, and contract obligations.
• If the report included recommendations, assign owners and timelines. Document completed actions. Update your policies and training as needed. Confirm that fixes appear in the next month’s reconciliations. This reduces the chance of repeat exceptions.

Practical tips to avoid common pitfalls

• Close your books monthly and on time. Late reconciliations lead to avoidable exceptions. Clear outstanding items promptly. Long‑outstanding cheques or deposits create red flags. Post interest and fees correctly. Do not charge bank fees to restricted funds unless rules allow it. Keep client ledger details complete and current. Every trust movement must tie to a client file and authorization.
• Control access to banking. Use dual approval for transfers. Segregate duties where possible. Review exception reports from your bank and software. Document every policy and update it with changes. Train staff and keep written procedures current. Document every correction with date, amount, and authorization.
• Work with your accountant early. Book the engagement well before the deadline. Share draft reconciliations for a quick scan. Resolve issues before fieldwork begins. This reduces cost and stress. Keep a rolling binder of key documents. Include monthly reconciliations, confirmations, and approvals. When the time comes to complete the report, you will have everything ready.

By following these steps, you can complete a clean, accurate Accountant’s Report. You will reduce risk, meet your obligations, and maintain strong financial discipline.

Legal Terms You Might Encounter

• Engagement letter. This is the written agreement between you and the accountant. It sets the scope, timeline, and fees. It also states what the report will and will not cover. Your form relies on this scope. If it is vague, your report may not answer required questions.
• Independence. Independence means the accountant has no conflict of interest. They must not make your management decisions. Your form may ask the accountant to confirm independence. If they helped run your finances, they may not be independent. That can limit the type of report you receive.
• Scope. Scope describes the boundaries of the accountant’s work. It includes the period examined, accounts reviewed, and procedures used. The form often summarizes this scope. Make sure the scope matches the form’s requirements. Gaps can lead to a qualified opinion.
• Materiality. Materiality is the threshold for what matters to users of the report. Small errors below this threshold may not affect the opinion. Your form may ask about material errors or exceptions. If an error is material, the accountant must highlight it.
• Management’s responsibility. This means you are responsible for the records and controls. The accountant reviews, but you own the numbers. The form usually repeats this point. Expect to sign management declarations that confirm it.
• Representation letter. This is a letter you sign to confirm key facts. You confirm that records are complete and accurate. You also confirm that all known issues were disclosed. Your form may require the accountant to reference this letter. Do not sign it unless you agree with every point.
• Internal controls. These are the processes that protect your funds and records. Examples include segregation of duties and approvals. The form may ask if controls were reviewed. Weak controls can lead to findings or restrictions. They can also trigger follow-up requests.
• Trust account. A trust account holds client funds you must keep separate. Many firms must include trust activity in the report. Your form may include specific trust schedules. Reconcile these accounts monthly to avoid report exceptions.
• Subsequent events. These are events after the period end but before the report date. They can affect the report. If something significant happens, the accountant may add a note. Your form may have a section for such disclosures.
• Qualified opinion. This opinion says the accountant found a specific limitation or exception. It does not mean everything is wrong. It flags a defined issue. If your form includes an opinion section, a qualified opinion will explain why. Fix the cause and plan a correction.
• Cut-off. Cut-off means recording items in the correct period. Revenues, expenses, and trust transfers must fall in the right dates. Your form’s schedules rely on proper cut-off. Errors here can misstate balances and trigger exceptions.
• Reconciliation. Reconciliation compares two records to ensure they match. Common examples are bank to book reconciliations. Your form may require reconciliations for all key accounts. Keep proof of each reconciliation ready for review.

FAQs

Do you need a licensed accountant to complete the report?

Yes. You need a qualified accountant who can sign the report. They must meet your regulator’s standards. Ask about their independence and experience with this form. Confirm that they can issue the required opinion type.

Do you have to include trust accounts in the report?

If you hold client funds, yes. Most forms require trust bank statements, reconciliations, and ledgers. You must show complete trust activity for the period. You also confirm no commingling with operating funds. If you do not hold trust funds, state that clearly.

Do you report on the calendar year or your fiscal year?

Use the period stated in your filing instructions. Many forms use your fiscal year. Some use a standard period. Check the start and end dates on the form. Confirm the dates in the engagement letter. Align cut-off and reconciliations to that period.

Do you attach financial statements to the Accountant’s Report?

Often, yes. The form may need balance sheets, income statements, and trust schedules. Some versions ask for notes or supplementary schedules. Include all schedules the form lists. Missing attachments delay acceptance.

Do you need to provide bank confirmations?

Usually, yes. Bank confirmations support balances in the report. Include all operating and trust accounts. Also include any credit lines or term loans. If you cannot get a confirmation, discuss alternatives with your accountant. They may need extra procedures.

Do you sign the form electronically or on paper?

Follow the signing instructions on the form. Some versions accept digital signatures. Others require wet signatures. If electronic signing is allowed, keep the certificate or audit trail. Record who signed and when.

Do you need to keep the accountant’s working papers?

No. The accountant keeps their working papers. You should keep copies of all records you gave them. Keep bank statements, reconciliations, ledgers, and the final report. Retain them for the required retention period. You may need them for future reviews.

Do you have to disclose errors found after filing?

Yes. If you find a material error, notify the accountant quickly. Ask whether an amended report is needed. Also notify the party who received the report. Record the steps you take to correct the error. Update your controls to prevent a repeat.

Checklist: Before, During, and After the Accountant’s Report

Before signing

• Confirm the reporting period and entity legal name.
• Sign an engagement letter that matches the form’s scope.
• Gather trial balance and general ledger for the period.
• Prepare bank statements and reconciliations for all accounts.
• Collect trust bank statements, reconciliations, and client ledgers.
• Compile deposit slips, cancelled cheques, and EFT proofs.
• Prepare accounts receivable and accounts payable aging.
• Export WIP reports and fee billings detail.
• Provide payroll summaries and source remittance records.
• Gather loan agreements and bank covenants, if any.
• Provide copies of leases and significant contracts.
• Share prior year Accountant’s Report and management letter.
• List all bank accounts, including closed or dormant ones.
• Identify all signing authorities and any changes during the period.
• Document key internal controls over cash and trust.
• Reconcile trust liabilities to individual client ledgers.
• Review suspense and clearing accounts for old items.
• Resolve unreconciled differences before the fieldwork.
• Prepare a draft representation letter for review.
• Assign a point person to answer questions during the review.

During signing

• Verify entity name, address, and identifying numbers on the form.
• Check the reporting period start and end dates.
• Confirm the accountant’s independence declaration is included.
• Review the scope wording for accuracy and completeness.
• Ensure all schedules match the form’s labels and order.
• Confirm balances tie to reconciliations and ledgers.
• Check that trust schedules reconcile to the trust bank statements.
• Read the opinion language line by line.
• Ensure any qualifications are precise and supported.
• Verify that exceptions and recommendations are clear.
• Confirm all attachments are present and numbered.
• Validate cross-references between the report and schedules.
• Confirm signature blocks show names and titles correctly.
• Check the report date aligns with completion of procedures.
• Ensure any subsequent events are considered up to the date.
• Secure signatures from authorized signers only.
• Make sure totals add correctly across pages.
• Save a locked PDF copy and a working copy.

After signing

• File the signed form with the required recipient by the deadline.
• Send copies to internal stakeholders who need them.
• Store the final report and all support in a secure folder.
• Keep a record of who received the report and when.
• Calendar the next reporting deadline and prep timeline.
• Review the accountant’s recommendations with your team.
• Assign owners and due dates for each action item.
• Update policies and controls based on findings.
• If a qualification was issued, plan the fix and timeline.
• Track proof of remediation for the next report.
• Prepare a summary memo for management or partners.
• Monitor for any subsequent events that need disclosure.
• If you must post the report internally, use the secure site.
• Retain records for the required retention period.
• Schedule a debrief with the accountant for lessons learned.

Common Mistakes to Avoid

• Don’t forget the correct reporting period. Using the wrong dates causes misstatements. It can lead to a qualified opinion or a rejected filing.
• Don’t submit unreconciled bank or trust accounts. Unreconciled items raise red flags. They can trigger extra procedures, delays, or follow-up inquiries.
• Don’t mix client trust funds with operating funds. Commingling breaches core rules. It can lead to severe consequences and report qualifications.
• Don’t omit required schedules or attachments. Missing schedules can invalidate the submission. You may need to refile and pay extra fees.
• Don’t let the wrong person sign. Unauthorized signatures undermine the report. The recipient may reject the filing outright.
• Don’t ignore independence issues. If your accountant helped run the books, say so. Hiding this can lead to ethics concerns and a withdrawn report.
• Don’t leave old items in suspense accounts. Stale balances suggest weak controls. They can drive exceptions or qualifications.
• Don’t rush the representation letter. Inaccurate statements increase risk. Correct them before signing to avoid amendments.

What to Do After Filling Out the Form

1) File the report.

• Send the signed form and all required schedules to the recipient. Follow the stated method and deadline. Keep a delivery receipt or confirmation.

2) Inform internal stakeholders.

• Share a copy with management or partners. Highlight the opinion, findings, and deadlines. Note any required follow-up actions.

3) Implement recommendations.

• Create a remediation plan for each finding. Assign owners and due dates. Examples include tighter cut-off procedures or new approvals.

4) Address qualifications.

• If the opinion is qualified, document the cause. Agree on steps to clear it before the next period. Schedule interim checks to track progress.

5) Update internal controls.

• Revise policies to prevent repeat issues. Train staff on new steps, such as monthly trust reconciliations. Document control design and frequency.

6) Maintain records.

• Archive the final report, schedules, and key support. Include reconciliations, bank confirmations, and representation letters. Use a consistent folder structure.

7) Prepare for questions.

• The recipient may request clarifications. Keep your accountant available. Respond with the supporting documents you already compiled.

8) Plan the next cycle.

• Set a prep calendar for the next report. Close the books on time each month. Reconcile bank and trust accounts monthly. Resolve exceptions quickly.

9) Manage subsequent events.

• Monitor events after the report date that affect the period. Decide if you need to notify the recipient. Consult your accountant on disclosure.

10) Amend if needed.

• If you find a material error, alert your accountant. Prepare an amended form if required. Explain the change and attach updated schedules.

11) Communicate changes in structure.

• If your entity changes name, partners, or accounts, document it. Update your list of bank accounts and signing authorities. Track the effective dates for the next report.

12) Evaluate your accountant relationship.

• Confirm the firm met your needs and timelines. If not, consider a change well before the next deadline. Maintain continuity in working papers and schedules.