The objective of an audit engagement is to render an opinion on the fairness of your financial statements. Federal and provincial legislation in Canada generally requires a corporation to prepare annual financial statements for audit by qualified independent auditors. You may be exempted from the audit requirement if all shareholders agree, in writing, to waive the appointment of an auditor. The financial statements subject to audit are the responsibility of your company’s management. As your auditors, our responsibility is to express an opinion on those financial statements. We must plan the audit to obtain reasonable assurance that the financial statements are free of material misstatement. Through the study and evaluation of your company’s system of internal control, and by inspection of documents, observation of assets, making of enquires within and outside your company, and by other generally accepted auditing procedures, we gather the evidence necessary to determine whether your financial statements present a fair picture of your company’s financial position and its activities during the period being audited.