6 Audit Readiness Review tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to audit readiness review work, not a general example.
Case Study 1 · CRA review defended
Audit Defence Closed In 3 Weeks, $77,000 Cleared — Contractor Bidding on Bonded, London
Client: A contractor bidding on bonded work · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Proposed tax cleared$77,000
Review duration3 weeks
OutcomeNo change
The situation
A contractor bidding on bonded work in London, Ontario was selected for review after a buyer’s due-diligence list that the existing statement package could not answer showed up in the CRA's automated matching. The proposed adjustment on audit readiness review came to $77,000.
What we did
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $77,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Planning that cut the bill
Remuneration Review Saved $18,500 Across Corporate And Personal Returns — Corporation Entering a Shareholder, Ottawa
Client: A corporation entering a shareholder buyout · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Combined saving$18,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a corporation entering a shareholder buyout in Ottawa, Ontario — the filings were on time and accurate. What they were not was planned. Statements delivered five months after year-end, past the covenant deadline had never been reviewed.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result
$18,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $20,000 In Unclaimed Input Tax Found — Franchisee Reporting to Its, Lethbridge
Client: A franchisee reporting to its franchisor · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Unclaimed tax found$20,000
Records rebuilt9 months
ProcessDocumented
The situation
A franchisee reporting to its franchisor in Lethbridge, Alberta could not answer basic questions about its own numbers, because a prior-year restatement with no note explaining what changed sat between the bank statements and the ledger.
What we did
We prepared a due-diligence-ready statement set with supporting schedules for each material balance, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $20,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Objection and relief
Notice Of Objection Allowed In Full, $77,000 Reversed — Business Preparing for Sale, Victoria
Client: A business preparing for sale · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$77,000
ObjectionAllowed in full
Account balanceNil
The situation
A business preparing for sale in Victoria, British Columbia had been reassessed for $77,000 and had 16 days left on the objection deadline. The reassessment rested on a bank asking for a review engagement while the file only supported a compilation.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble.
The result
The appeals officer allowed the objection in full. $77,000 was reversed and the account returned to a nil balance.
Case Study 5 · Backlog brought current
4 Years Filed, $13,500 Removed From The Assessed Balance — Company Under a Bank, Burnaby
Client: A company under a bank covenant · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Years filed4
Assessed balance removed$13,500
CollectionsStopped
The situation
A company under a bank covenant in Burnaby, British Columbia had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying a bonding limit capped because the last statements were prepared on a cash basis on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. 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, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $13,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 6 · Missed incentive claimed
Incentive Review Recovered $88,000 Across 3 Open Years — Corporation with an Outside, Winnipeg
Client: A corporation with an outside minority shareholder · Where: Winnipeg, Manitoba · Engagement: 8 weeks, fixed fee
Recovered$88,000
Open years claimed3
Ongoing trackingIn place
The situation
An incentive review at a corporation with an outside minority shareholder in Winnipeg, Manitoba started from a simple question: what has never been claimed? The answer ran to 3 years, driven by a prior-year restatement with no note explaining what changed.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $88,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
