6 Internal Audit Support 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 internal audit support work, not a general example.
Case Study 1 · Cash and remittance control
Instalments Rebased, $109,000 Of Cash Returned To The Business — Franchisee Reporting to Its, London
Client: A franchisee reporting to its franchisor · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Cash returned$109,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A franchisee reporting to its franchisor 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
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
$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 — Co-Operative Reporting to Members, Lethbridge
Client: A co-operative reporting to members · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Credits claimed$32,500
Years adjusted7
Review outcomeNo adjustment
The situation
A co-operative reporting to members in Lethbridge, Alberta had been filing for 7 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 upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions.
The result
$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 in Burnaby, British Columbia had been reassessed for $107,000 and had 16 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 prepared a due-diligence-ready statement set with supporting schedules for each material balance.
The result
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 — Corporation with an Outside, Toronto
Client: A corporation with an outside minority shareholder · Where: Toronto, Ontario · Engagement: 5 weeks, fixed fee
Combined saving$69,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a corporation with an outside minority shareholder in Toronto, Ontario — 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 compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, 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
$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 — Company Under a Bank, Brampton
Client: A company under a bank covenant · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Gain sheltered$305,000
ClosingOn schedule
Share qualificationMet
The situation
A company under a bank covenant 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
We purified the corporation so the shares met the qualifying tests, then 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 well ahead of the closing date.
The result
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 — Company Refinancing Its Operating, Calgary
Client: A company refinancing its operating line · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Penalty avoided$66,000
Turnaround11 weeks
FiledOn time
The situation
A company refinancing its operating line in Calgary, Alberta came to us 11 weeks before its filing deadline with statements delivered five months after year-end, past the covenant deadline. A late filing would have triggered a penalty of roughly $66,000 before interest.
What we did
We worked backwards from the deadline. We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, prioritising the items that actually gated the filing and deferring everything that did not.
The result
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, 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.
