6 Compilation Engagement 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 compilation engagement work, not a general example.
Case Study 1 · Cash and remittance control
$31,000 Of Working Capital Freed From The Tax Cycle — Franchisee Reporting to Its, Hamilton
Client: A franchisee reporting to its franchisor · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Working capital freed$31,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A franchisee reporting to its franchisor in Hamilton, Ontario was profitable on paper and short of cash every month. Statements delivered five months after year-end, past the covenant deadline explained most of the gap.
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 and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$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 — Company Under a Bank, Mississauga
Client: A company under a bank covenant · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Credits claimed$26,500
Years adjusted4
Review outcomeNo adjustment
The situation
A company under a bank covenant in Mississauga, Ontario had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat a bonding limit capped because the last statements were prepared on a cash basis.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then prepared a due-diligence-ready statement set with supporting schedules for each material balance.
The result
$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 — Corporation Entering a Shareholder, Lethbridge
Client: A corporation entering a shareholder buyout · Where: Lethbridge, Alberta · Engagement: 11 weeks, fixed fee
Amount reversed$56,000
ObjectionAllowed in full
Account balanceNil
The situation
A corporation entering a shareholder buyout in Lethbridge, Alberta had been reassessed for $56,000 and had 6 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. $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 — Business Preparing for Sale, Moncton
Client: A business preparing for sale · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Combined saving$25,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a business preparing for sale 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
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
$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 — Contractor Bidding on Bonded, Kitchener
Client: A contractor bidding on bonded work · Where: Kitchener, Ontario · Engagement: 5 weeks, fixed fee
Tax deferred$635,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a contractor bidding on bonded work 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
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, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$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 — Business Applying for Government, London
Client: A business applying for government funding · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Penalty cancelled$92,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A business applying for government funding in London, Ontario had already missed one deadline and was about to miss a second. Behind it sat statements delivered five months after year-end, past the covenant deadline, and a penalty of $92,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then prepared a due-diligence-ready statement set with supporting schedules for each material balance.
The result
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, 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.
