6 worked Internal Audit Support 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 internal audit support work, not a specific client's file.
Case Study 1 · Cash and remittance control
Instalments Rebased, $109,000 Of Cash Returned To The Business — Bonded Work Bidder, London
Client: A contractor bidding on bonded work · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Cash returned$109,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A contractor bidding on bonded work, London, Ontario
A contractor bidding on bonded work in London, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Statements delivered five months after year-end, past the covenant deadline was tying up $109,000 of cash.
What we did for A contractor bidding on bonded work, London, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default, 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, London, Ontario
$109,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Missed incentive claimed
$32,500 In Credits Claimed That Prior Filings Had Missed — Shareholder Buyout Corporation, Lethbridge
Client: A corporation entering a shareholder buyout · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Credits claimed$32,500
Years adjusted7
Review outcomeNo adjustment
The situation — A corporation entering a shareholder buyout, Lethbridge, Alberta
A corporation entering a shareholder buyout in Lethbridge, Alberta had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat a prior-year restatement with no note explaining what changed.
What we did for A corporation entering a shareholder buyout, Lethbridge, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice, then described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question.
The result — A corporation entering a shareholder buyout, Lethbridge, Alberta
$32,500 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, $107,000 Reversed — Business Preparing for Sale, Burnaby
Client: A business preparing for sale · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Amount reversed$107,000
ObjectionAllowed in full
Account balanceNil
The situation — A business preparing for sale, Burnaby, British Columbia
A business preparing for sale in Burnaby, British Columbia had been reassessed for $107,000 and had 16 days left on the objection deadline. The reassessment rested on a shareholder agreement calling for audited statements that had been satisfied with a compilation for years.
What we did for A business preparing for sale, Burnaby, British Columbia
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 — A business preparing for sale, Burnaby, British Columbia
The appeals officer allowed the objection in full. $107,000 was reversed and the account returned to a nil balance.
Case Study 4 · Planning that cut the bill
Remuneration Review Saved $69,000 Across Corporate And Personal Returns — Covenant-Bound Borrower, Toronto
Client: A company under a bank covenant · Where: Toronto, Ontario · Engagement: 5 weeks, fixed fee
Combined saving$69,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A company under a bank covenant, Toronto, Ontario
Nothing was wrong at a company under a bank covenant in Toronto, Ontario — the filings were on time and accurate. What they were not was planned. An insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries had never been reviewed.
What we did for A company under a bank covenant, Toronto, Ontario
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer, 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 company under a bank covenant, Toronto, Ontario
$69,000 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
$305,000 Sheltered By The Lifetime Capital Gains Exemption — Due-Diligence Vendor, Brampton
Client: A vendor assembling due-diligence records · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Gain sheltered$305,000
ClosingOn schedule
Share qualificationMet
The situation — A vendor assembling due-diligence records, Brampton, Ontario
A vendor assembling due-diligence records in Brampton, Ontario had an offer on the table and 19 months to close. The shares did not qualify for the capital gains exemption, and retained cash well above what the business needed to operate was part of the reason.
What we did for A vendor assembling due-diligence records, Brampton, Ontario
We purified the corporation so the shares met the qualifying tests, then prepared a due-diligence-ready statement set with supporting schedules for each material balance well ahead of the closing date.
The result — A vendor assembling due-diligence records, Brampton, Ontario
The sale closed on schedule with $305,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Deadline rescue
Filed On Time From A Standing Start, $66,000 Penalty Avoided — Reporting Franchisee, Calgary
Client: A franchisee reporting to its franchisor · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Penalty avoided$66,000
Turnaround11 weeks
FiledOn time
The situation — A franchisee reporting to its franchisor, Calgary, Alberta
A franchisee reporting to its franchisor in Calgary, Alberta came to us 11 weeks before its filing deadline with a buyer’s due-diligence list that the existing statement package could not answer. A late filing would have triggered a penalty of roughly $66,000 before interest.
What we did for A franchisee reporting to its franchisor, Calgary, Alberta
We worked backwards from the deadline. We prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A franchisee reporting to its franchisor, Calgary, Alberta
The return was filed on time and complete. The $66,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
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.
