6 worked Compilation Financial Statements 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 financial statements work, not a specific client's file.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $47,000 Saved Each Year — Minority-Shareholder Corporation, Regina
Client: A corporation with an outside minority shareholder · Where: Regina, Saskatchewan · Engagement: 11 weeks, fixed fee
Annual saving$47,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A corporation with an outside minority shareholder, Regina, Saskatchewan
A corporation with an outside minority shareholder in Regina, Saskatchewan had outgrown the structure it started with. A buyer’s due-diligence list that the existing statement package could not answer was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A corporation with an outside minority shareholder, Regina, Saskatchewan
We mapped the current structure, modelled the target, and read the shareholder agreement and the loan documents, established what level of assurance each user actually required, and scoped the engagement to the highest of them — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A corporation with an outside minority shareholder, Regina, Saskatchewan
The reorganisation completed without triggering tax, and the new structure saves approximately $47,000 a year while removing the exposure the old one carried.
Case Study 2 · Missed incentive claimed
Incentive Review Recovered $140,000 Across 4 Open Years — Restating Corporation, Kelowna
Client: A corporation restating a prior year · Where: Kelowna, British Columbia · Engagement: 5 weeks, fixed fee
Recovered$140,000
Open years claimed4
Ongoing trackingIn place
The situation — A corporation restating a prior year, Kelowna, British Columbia
An incentive review at a corporation restating a prior year in Kelowna, British Columbia started from a simple question: what has never been claimed? The answer ran to 4 years, driven by an insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries.
What we did for A corporation restating a prior year, Kelowna, British Columbia
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, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A corporation restating a prior year, Kelowna, British Columbia
The credits produced $140,000 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.
Case Study 3 · Planning that cut the bill
$65,000 Saved By Correcting What Prior Filings Had Missed — Reporting Franchisee, Edmonton
Client: A franchisee reporting to its franchisor · Where: Edmonton, Alberta · Engagement: 4 weeks, fixed fee
Saving identified$65,000
RecurringYes
Positions documentedAll
The situation — A franchisee reporting to its franchisor, Edmonton, Alberta
A franchisee reporting to its franchisor in Edmonton, Alberta asked for a second opinion on compilation financial statements after three years of rising tax. The review found a bonding limit capped because the last statements were prepared on a cash basis.
What we did for A franchisee reporting to its franchisor, Edmonton, Alberta
We built the comparison first — current structure against two alternatives — and then separated the bookkeeping work from the assurance engagement so the independence question had one clear answer.
The result — A franchisee reporting to its franchisor, Edmonton, Alberta
First-year saving of $65,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 4 · Deadline rescue
8-Week Turnaround Beat The Deadline And Saved $74,000 — Late-Statement Business, London
Client: A business whose statements arrive late every year · Where: London, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$74,000
Filed with7 days to spare
Next yearPapers ready
The situation — A business whose statements arrive late every year, London, Ontario
With the deadline for compilation financial statements weeks away, a business whose statements arrive late every year in London, Ontario was carrying a shareholder agreement calling for audited statements that had been satisfied with a compilation for years. The exposure if the date slipped was around $74,000.
What we did for A business whose statements arrive late every year, London, Ontario
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A business whose statements arrive late every year, London, Ontario
Filed with 7 days to spare. $74,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 5 · Backlog brought current
$51,000 Of Arbitrary Assessments Vacated After 5 Years — Government Funding Applicant, Windsor
Client: A business applying for government funding · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$51,000
Years brought current5
Account statusCurrent
The situation — A business applying for government funding, Windsor, Ontario
5 years of unfiled returns had turned into notional assessments at a business applying for government funding in Windsor, Ontario, with a bank asking for a review engagement while the file only supported a compilation underneath. Collections had already started.
What we did for A business applying for government funding, Windsor, Ontario
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A business applying for government funding, Windsor, Ontario
All 5 years were accepted as filed. $51,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
Case Study 6 · CRA review defended
$125,000 Reassessment Reduced To Nil On Review — Due-Diligence Vendor, Calgary
Client: A vendor assembling due-diligence records · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$125,000
Prior filingsUndisturbed
The situation — A vendor assembling due-diligence records, Calgary, Alberta
A review notice arrived at a vendor assembling due-diligence records in Calgary, Alberta covering compilation financial statements for two tax years. The auditor's working position was an adjustment of $125,000, driven by a prior-year restatement with no note explaining what changed.
What we did for A vendor assembling due-diligence records, Calgary, Alberta
Rather than negotiate, we rebuilt the record. We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A vendor assembling due-diligence records, Calgary, Alberta
The auditor accepted the documented position and closed the review without adjustment, protecting $125,000 and leaving the prior filings undisturbed.
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.
