6 worked Agreed-Upon Procedures Engagement case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to agreed-upon procedures engagement work, not a specific client's file.
Case Study 1 · Backlog brought current
3 Years Filed, $107,000 Removed From The Assessed Balance — Bylaw-Audit Non-Profit, Guelph
Client: A not-for-profit with a bylaw audit requirement · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
Years filed3
Assessed balance removed$107,000
CollectionsStopped
The situation — A not-for-profit with a bylaw audit requirement, Guelph, Ontario
A not-for-profit with a bylaw audit requirement in Guelph, Ontario had not filed for 3 years. The CRA had issued arbitrary assessments, and the business was carrying a buyer’s due-diligence list that the existing statement package could not answer on top of a growing interest balance.
What we did for A not-for-profit with a bylaw audit requirement, Guelph, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We read the shareholder agreement and the loan documents, established what level of assurance each user actually required, and scoped the engagement to the highest of them, filing the years in sequence rather than all at once.
The result — A not-for-profit with a bylaw audit requirement, Guelph, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $107,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $38,000 Reversed — Minority-Shareholder Corporation, Red Deer
Client: A corporation with an outside minority shareholder · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Amount reversed$38,000
ObjectionAllowed in full
Account balanceNil
The situation — A corporation with an outside minority shareholder, Red Deer, Alberta
A corporation with an outside minority shareholder in Red Deer, Alberta had been reassessed for $38,000 and had 22 days left on the objection deadline. The reassessment rested on a shareholder agreement calling for audited statements that had been satisfied with a compilation for years.
What we did for A corporation with an outside minority shareholder, Red Deer, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder, and prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise.
The result — A corporation with an outside minority shareholder, Red Deer, Alberta
The appeals officer allowed the objection in full. $38,000 was reversed and the account returned to a nil balance.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 9 Weeks To 5 Days — Government Funding Applicant, Saskatoon
Client: A business applying for government funding · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Close time before9 weeks
Close time after5 days
Year-endReview, not rebuild
The situation — A business applying for government funding, Saskatoon, Saskatchewan
The accounting file at a business applying for government funding in Saskatoon, Saskatchewan was built on an unusual revenue recognition policy that appeared nowhere in the basis-of-accounting note. The year-end had taken 9 weeks each of the last three years.
What we did for A business applying for government funding, Saskatoon, Saskatchewan
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A business applying for government funding, Saskatoon, Saskatchewan
The file reconciles. Month-end closes in 5 days instead of 9 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Planning that cut the bill
$53,000 Saved By Correcting What Prior Filings Had Missed — Member-Reporting Co-Operative, Edmonton
Client: A co-operative reporting to members · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
Saving identified$53,000
RecurringYes
Positions documentedAll
The situation — A co-operative reporting to members, Edmonton, Alberta
A co-operative reporting to members in Edmonton, Alberta asked for a second opinion on agreed-upon procedures engagement after three years of rising tax. The review found an insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries.
What we did for A co-operative reporting to members, Edmonton, Alberta
We built the comparison first — current structure against two alternatives — and then described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question.
The result — A co-operative reporting to members, Edmonton, Alberta
First-year saving of $53,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · CRA review defended
$104,000 Proposed Adjustment Withdrawn In Full — Review Engagement Candidate, Lethbridge
Client: A company whose lender asked for a review engagement · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$104,000
File closed in8 weeks
Penalties assessedNone
The situation — A company whose lender asked for a review engagement, Lethbridge, Alberta
A company whose lender asked for a review engagement in Lethbridge, Alberta received a proposal letter opening a review of agreed-upon procedures engagement. The CRA had identified a bank asking for a review engagement while the file only supported a compilation and proposed an adjustment of $104,000, with 30 days to respond.
What we did for A company whose lender asked for a review engagement, Lethbridge, Alberta
We treated the response as an evidence exercise rather than an argument. We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, then indexed every supporting document against the specific line the auditor had questioned.
The result — A company whose lender asked for a review engagement, Lethbridge, Alberta
The proposed adjustment was withdrawn in full — all $104,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Sale and succession
Share Sale Restructured, $680,000 Less Tax On Closing — Late-Statement Business, Victoria
Client: A business whose statements arrive late every year · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Tax saved on closing$680,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A business whose statements arrive late every year, Victoria, British Columbia
A business whose statements arrive late every year in Victoria, British Columbia was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends, which would have reduced the price or killed the deal outright.
What we did for A business whose statements arrive late every year, Victoria, British Columbia
We cleaned up the historical file, prepared a due-diligence-ready statement set with supporting schedules for each material balance, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A business whose statements arrive late every year, Victoria, British Columbia
The deal closed at the agreed price. $680,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
