6 worked Compilation 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 compilation engagement work, not a specific client's file.
Case Study 1 · Cash and remittance control
$31,000 Of Working Capital Freed From The Tax Cycle — Business Preparing for Sale, Hamilton
Client: A business preparing for sale · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Working capital freed$31,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A business preparing for sale, Hamilton, Ontario
A business preparing for sale in Hamilton, Ontario was profitable on paper and short of cash every month. A shareholder agreement calling for audited statements that had been satisfied with a compilation for years explained most of the gap.
What we did for A business preparing for sale, Hamilton, Ontario
We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A business preparing for sale, Hamilton, Ontario
$31,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 2 · Missed incentive claimed
$26,500 In Credits Claimed That Prior Filings Had Missed — Shareholder Buyout Corporation, Mississauga
Client: A corporation entering a shareholder buyout · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Credits claimed$26,500
Years adjusted4
Review outcomeNo adjustment
The situation — A corporation entering a shareholder buyout, Mississauga, Ontario
A corporation entering a shareholder buyout in Mississauga, Ontario had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat a shareholder agreement calling for audited statements that had been satisfied with a compilation for years.
What we did for A corporation entering a shareholder buyout, Mississauga, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise.
The result — A corporation entering a shareholder buyout, Mississauga, Ontario
$26,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Objection and relief
Notice Of Objection Allowed In Full, $56,000 Reversed — Bonded Work Bidder, Lethbridge
Client: A contractor bidding on bonded work · Where: Lethbridge, Alberta · Engagement: 11 weeks, fixed fee
Amount reversed$56,000
ObjectionAllowed in full
Account balanceNil
The situation — A contractor bidding on bonded work, Lethbridge, Alberta
A contractor bidding on bonded work in Lethbridge, Alberta had been reassessed for $56,000 and had 6 days left on the objection deadline. The reassessment rested on a prior-year restatement with no note explaining what changed.
What we did for A contractor bidding on bonded work, Lethbridge, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder, and 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 contractor bidding on bonded work, Lethbridge, Alberta
The appeals officer allowed the objection in full. $56,000 was reversed and the account returned to a nil balance.
Case Study 4 · Planning that cut the bill
Remuneration Review Saved $25,500 Across Corporate And Personal Returns — Restating Corporation, Moncton
Client: A corporation restating a prior year · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Combined saving$25,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A corporation restating a prior year, Moncton, New Brunswick
Nothing was wrong at a corporation restating a prior year in Moncton, New Brunswick — the filings were on time and accurate. What they were not was planned. A bonding limit capped because the last statements were prepared on a cash basis had never been reviewed.
What we did for A corporation restating a prior year, Moncton, New Brunswick
We prepared a due-diligence-ready statement set with supporting schedules for each material balance, 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 — A corporation restating a prior year, Moncton, New Brunswick
$25,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 5 · Sale and succession
Intergenerational Transfer Completed With $635,000 Deferred — Reporting Franchisee, Kitchener
Client: A franchisee reporting to its franchisor · Where: Kitchener, Ontario · Engagement: 5 weeks, fixed fee
Tax deferred$635,000
TransferCompleted
RecordsReview-ready
The situation — A franchisee reporting to its franchisor, Kitchener, Ontario
A generational transfer at a franchisee reporting to its franchisor in Kitchener, Ontario had been discussed for years without a plan. A minute book with no resolutions behind a decade of dividends meant the transfer as contemplated would have been fully taxable.
What we did for A franchisee reporting to its franchisor, Kitchener, Ontario
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A franchisee reporting to its franchisor, Kitchener, Ontario
$635,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 6 · Deadline rescue
$92,000 Late-Filing Penalty Cancelled On Relief Application — Due-Diligence Vendor, London
Client: A vendor assembling due-diligence records · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Penalty cancelled$92,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A vendor assembling due-diligence records, London, Ontario
A vendor assembling due-diligence records in London, Ontario had already missed one deadline and was about to miss a second. Behind it sat a bank asking for a review engagement while the file only supported a compilation, and a penalty of $92,000 was accruing.
What we did for A vendor assembling due-diligence records, London, Ontario
We split the work into what had to happen before the deadline and what could follow it, then 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, London, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $92,000 of the penalty already assessed on the earlier year.
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.
