6 worked Audit Readiness Review 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 readiness review work, not a specific client's file.
Case Study 1 · CRA review defended
Audit Defence Closed In 3 Weeks, $77,000 Cleared — Restating Corporation, London
Client: A corporation restating a prior year · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Proposed tax cleared$77,000
Review duration3 weeks
OutcomeNo change
The situation — A corporation restating a prior year, London, Ontario
A corporation restating a prior year in London, Ontario was selected for review. Statements delivered five months after year-end, past the covenant deadline had shown up in the CRA's automated matching. The proposed adjustment on audit readiness review came to $77,000.
What we did for A corporation restating a prior year, London, Ontario
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 — A corporation restating a prior year, London, Ontario
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 — Covenant-Bound Borrower, Ottawa
Client: A company under a bank covenant · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Combined saving$18,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A company under a bank covenant, Ottawa, Ontario
Nothing was wrong at a company under a bank covenant in Ottawa, Ontario. The filings were on time and accurate. What they were not was planned. A buyer’s due-diligence list that the existing statement package could not answer had never been reviewed.
What we did for A company under a bank covenant, Ottawa, Ontario
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. We 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 — A company under a bank covenant, Ottawa, Ontario
$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 — Bonded Work Bidder, Lethbridge
Client: A contractor bidding on bonded work · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Unclaimed tax found$20,000
Records rebuilt9 months
ProcessDocumented
The situation — A contractor bidding on bonded work, Lethbridge, Alberta
A contractor bidding on bonded work in Lethbridge, Alberta could not answer basic questions about its own numbers. An insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries sat between the bank statements and the ledger.
What we did for A contractor bidding on bonded work, Lethbridge, Alberta
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A contractor bidding on bonded work, Lethbridge, Alberta
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 — Due-Diligence Vendor, Victoria
Client: A vendor assembling due-diligence records · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$77,000
ObjectionAllowed in full
Account balanceNil
The situation — A vendor assembling due-diligence records, Victoria, British Columbia
A vendor assembling due-diligence records in Victoria, British Columbia had been reassessed for $77,000. 16 days were left on the objection deadline. The reassessment rested on a bonding limit capped because the last statements were prepared on a cash basis.
What we did for A vendor assembling due-diligence records, Victoria, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions.
The result — A vendor assembling due-diligence records, Victoria, British Columbia
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 — Shareholder Buyout Corporation, Burnaby
Client: A corporation entering a shareholder buyout · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Years filed4
Assessed balance removed$13,500
CollectionsStopped
The situation — A corporation entering a shareholder buyout, Burnaby, British Columbia
A corporation entering a shareholder buyout in Burnaby, British Columbia had not filed for 4 years. The CRA had issued arbitrary assessments. The business was carrying a shareholder agreement calling for audited statements that had been satisfied with a compilation for years. That came on top of a growing interest balance.
What we did for A corporation entering a shareholder buyout, Burnaby, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. We filed the years in sequence rather than all at once.
The result — A corporation entering a shareholder buyout, Burnaby, British Columbia
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 — Reporting Franchisee, Winnipeg
Client: A franchisee reporting to its franchisor · Where: Winnipeg, Manitoba · Engagement: 8 weeks, fixed fee
Recovered$88,000
Open years claimed3
Ongoing trackingIn place
The situation — A franchisee reporting to its franchisor, Winnipeg, Manitoba
An incentive review at a franchisee reporting to its franchisor in Winnipeg, Manitoba started from a simple question: what has never been claimed? The answer ran to 3 years. It was driven by a bank asking for a review engagement while the file only supported a compilation.
What we did for A franchisee reporting to its franchisor, Winnipeg, Manitoba
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A franchisee reporting to its franchisor, Winnipeg, Manitoba
The credits produced $88,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
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.
