6 worked Consolidated 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 consolidated financial statements work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $75,000 Cut From A 3-Year Backlog — Late-Statement Business, Vancouver
Client: A business whose statements arrive late every year · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Balance reduced by$75,000
Backlog cleared3 years
CollectionsHalted
The situation — A business whose statements arrive late every year, Vancouver, British Columbia
By the time a business whose statements arrive late every year in Vancouver, British Columbia called, 3 years were outstanding. The CRA had assessed on estimates. Underneath it sat a bank asking for a review engagement while the file only supported a compilation.
What we did for A business whose statements arrive late every year, Vancouver, British Columbia
We reconstructed the records year by year. We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions. Each filing replaced an arbitrary assessment with a real one.
The result — A business whose statements arrive late every year, Vancouver, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $75,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $12,500 Vacated — Refinancing Borrower, Mississauga
Client: A company refinancing its operating line · Where: Mississauga, Ontario · Engagement: 7 weeks, fixed fee
Assessment vacated$12,500
Supporting recordsNow on file
AccountCleared
The situation — A company refinancing its operating line, Mississauga, Ontario
A company refinancing its operating line in Mississauga, Ontario was carrying $12,500 of penalties and interest. The charges arose from a buyer’s due-diligence list that the existing statement package could not answer. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A company refinancing its operating line, Mississauga, Ontario
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A company refinancing its operating line, Mississauga, Ontario
The assessment was vacated. $12,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 5 Weeks To 8 Days — Bylaw-Audit Non-Profit, Edmonton
Client: A not-for-profit with a bylaw audit requirement · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Close time before5 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
The accounting file at a not-for-profit with a bylaw audit requirement in Edmonton, Alberta had a weak foundation. It was built on statements delivered five months after year-end, past the covenant deadline. The year-end had taken 5 weeks each of the last three years.
What we did for A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
We read the shareholder agreement and the loan documents and established what level of assurance each user actually required. We scoped the engagement to the highest of them. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
The file reconciles. Month-end closes in 8 days instead of 5 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Planning that cut the bill
$50,000 Cut From The Annual Tax Bill — Minority-Shareholder Corporation, Ottawa
Client: A corporation with an outside minority shareholder · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
First-year saving$50,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A corporation with an outside minority shareholder, Ottawa, Ontario
A corporation with an outside minority shareholder in Ottawa, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a shareholder agreement calling for audited statements that had been satisfied with a compilation for years on the table.
What we did for A corporation with an outside minority shareholder, Ottawa, Ontario
We modelled the current position against the alternatives before changing anything. Then we compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble.
The result — A corporation with an outside minority shareholder, Ottawa, Ontario
The change saved $50,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 5 · CRA review defended
Audit Defence Closed In 4 Weeks, $80,000 Cleared — Government Funding Applicant, Winnipeg
Client: A business applying for government funding · Where: Winnipeg, Manitoba · Engagement: 4 weeks, fixed fee
Proposed tax cleared$80,000
Review duration4 weeks
OutcomeNo change
The situation — A business applying for government funding, Winnipeg, Manitoba
A business applying for government funding in Winnipeg, Manitoba was selected for review. A bonding limit capped because the last statements were prepared on a cash basis had shown up in the CRA's automated matching. The proposed adjustment on consolidated financial statements came to $80,000.
What we did for A business applying for government funding, Winnipeg, Manitoba
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 business applying for government funding, Winnipeg, Manitoba
The review closed with no change. $80,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Sale and succession
Share Sale Restructured, $275,000 Less Tax On Closing — Member-Reporting Co-Operative, Hamilton
Client: A co-operative reporting to members · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Tax saved on closing$275,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A co-operative reporting to members, Hamilton, Ontario
A co-operative reporting to members in Hamilton, Ontario was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate. That would have reduced the price or killed the deal outright.
What we did for A co-operative reporting to members, Hamilton, Ontario
We cleaned up the historical file. We prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A co-operative reporting to members, Hamilton, Ontario
The deal closed at the agreed price. $275,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
