6 Compilation Financial Statements 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 financial statements work, not a general example.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $47,000 Saved Each Year — Company Refinancing Its Operating, Regina
Client: A company refinancing its operating line · Where: Regina, Saskatchewan · Engagement: 11 weeks, fixed fee
Annual saving$47,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
A company refinancing its operating line in Regina, Saskatchewan had outgrown the structure it started with. Statements delivered five months after year-end, past the covenant deadline was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
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 — Corporation Entering a Shareholder, Kelowna
Client: A corporation entering a shareholder buyout · Where: Kelowna, British Columbia · Engagement: 5 weeks, fixed fee
Recovered$140,000
Open years claimed4
Ongoing trackingIn place
The situation
An incentive review at a corporation entering a shareholder buyout in Kelowna, British Columbia started from a simple question: what has never been claimed? The answer ran to 4 years, driven by statements delivered five months after year-end, past the covenant deadline.
What we did
We prepared a due-diligence-ready statement set with supporting schedules for each material balance, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
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 — Co-Operative Reporting to Members, Edmonton
Client: A co-operative reporting to members · Where: Edmonton, Alberta · Engagement: 4 weeks, fixed fee
Saving identified$65,000
RecurringYes
Positions documentedAll
The situation
A co-operative reporting to members in Edmonton, Alberta asked for a second opinion on compilation financial statements after three years of rising tax. The review found a prior-year restatement with no note explaining what changed.
What we did
We built the comparison first — current structure against two alternatives — and then compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble.
The result
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 — Company Under a Bank, London
Client: A company under a bank covenant · Where: London, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$74,000
Filed with7 days to spare
Next yearPapers ready
The situation
With the deadline for compilation financial statements weeks away, a company under a bank covenant in London, Ontario was carrying a buyer’s due-diligence list that the existing statement package could not answer. The exposure if the date slipped was around $74,000.
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
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 — Business Applying for Government, 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
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
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
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 — Franchisee Reporting to Its, Calgary
Client: A franchisee reporting to its franchisor · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$125,000
Prior filingsUndisturbed
The situation
A review notice arrived at a franchisee reporting to its franchisor in Calgary, Alberta covering compilation financial statements for two tax years. The auditor's working position was an adjustment of $125,000, driven by statements delivered five months after year-end, past the covenant deadline.
What we did
Rather than negotiate, we rebuilt the record. We prepared a due-diligence-ready statement set with supporting schedules for each material balance and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
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, 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.
