Audit Assistance and Working-Paper Support Case Studies
6 worked Audit Assistance and Working-Paper Support 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 audit assistance and working-paper support work, not a specific client's file.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $22,000 Saved Each Year — Shareholder Buyout Corporation, Lethbridge
Client: A corporation entering a shareholder buyout · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Annual saving$22,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A corporation entering a shareholder buyout, Lethbridge, Alberta
A corporation entering a shareholder buyout in Lethbridge, Alberta had outgrown the structure it started with. A shareholder agreement calling for audited statements that had been satisfied with a compilation for years was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A corporation entering a shareholder buyout, Lethbridge, Alberta
We mapped the current structure and modelled the target. Then we described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A corporation entering a shareholder buyout, Lethbridge, Alberta
The reorganisation completed without triggering tax, and the new structure saves approximately $22,000 a year while removing the exposure the old one carried.
Case Study 2 · Cash and remittance control
Remittance Schedule Corrected, $99,000 Refunded — Government Funding Applicant, Saskatoon
Client: A business applying for government funding · Where: Saskatoon, Saskatchewan · Engagement: 6 weeks, fixed fee
Overpayment refunded$99,000
Late remittances sinceZero
ScheduleAutomated
The situation — A business applying for government funding, Saskatoon, Saskatchewan
Remittances at a business applying for government funding in Saskatoon, Saskatchewan were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat an unusual revenue recognition policy that appeared nowhere in the basis-of-accounting note.
What we did for A business applying for government funding, Saskatoon, Saskatchewan
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A business applying for government funding, Saskatoon, Saskatchewan
Penalties stopped from the following remittance onwards, and $99,000 of overpaid instalments was refunded.
Case Study 3 · Missed incentive claimed
$117,000 Credit Claim Filed And Accepted Without Adjustment — Bonded Work Bidder, Kelowna
Client: A contractor bidding on bonded work · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Claim value$117,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A contractor bidding on bonded work, Kelowna, British Columbia
A contractor bidding on bonded work in Kelowna, British Columbia assumed the credits did not apply to a business its size. A prior-year restatement with no note explaining what changed meant they had applied all along.
What we did for A contractor bidding on bonded work, Kelowna, British Columbia
We identified the qualifying activity and built the documentation to support it. Then we prepared a due-diligence-ready statement set with supporting schedules for each material balance.
The result — A contractor bidding on bonded work, Kelowna, British Columbia
$117,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Objection and relief
$114,000 Of Penalties And Interest Cancelled On Relief — Refinancing Borrower, Surrey
Client: A company refinancing its operating line · Where: Surrey, British Columbia · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$114,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A company refinancing its operating line, Surrey, British Columbia
An assessment of $114,000 landed at a company refinancing its operating line in Surrey, British Columbia following a desk review. It turned on a bank asking for a review engagement while the file only supported a compilation. The auditor had not seen the records behind it.
What we did for A company refinancing its operating line, Surrey, British Columbia
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A company refinancing its operating line, Surrey, British Columbia
$114,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Planning that cut the bill
$64,000 Saved By Correcting What Prior Filings Had Missed — Restating Corporation, Moncton
Client: A corporation restating a prior year · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Saving identified$64,000
RecurringYes
Positions documentedAll
The situation — A corporation restating a prior year, Moncton, New Brunswick
A corporation restating a prior year in Moncton, New Brunswick asked for a second opinion on audit assistance and working-paper support. That followed three years of rising tax. The review found statements delivered five months after year-end, past the covenant deadline.
What we did for A corporation restating a prior year, Moncton, New Brunswick
We built the comparison first: current structure against two alternatives. Then we converted the records to the accrual basis, restated the comparative year with proper disclosure, and rebuilt the statement package around the bonding company’s requirements.
The result — A corporation restating a prior year, Moncton, New Brunswick
First-year saving of $64,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $410,000 Deferred — Member-Reporting Co-Operative, Winnipeg
Client: A co-operative reporting to members · Where: Winnipeg, Manitoba · Engagement: 11 weeks, fixed fee
Tax deferred$410,000
TransferCompleted
RecordsReview-ready
The situation — A co-operative reporting to members, Winnipeg, Manitoba
A generational transfer at a co-operative reporting to members in Winnipeg, Manitoba had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did for A co-operative reporting to members, Winnipeg, Manitoba
We read the shareholder agreement and the loan documents and established what level of assurance each user actually required. We scoped the engagement to the highest of them. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A co-operative reporting to members, Winnipeg, Manitoba
$410,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
