6 worked Internal Controls Review 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 controls review work, not a specific client's file.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $47,000 Freed — Business Preparing for Sale, Brampton
Client: A business preparing for sale · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Cash freed$47,000
Compliance failuresNone
ReportingMonthly
The situation — A business preparing for sale, Brampton, Ontario
A business preparing for sale in Brampton, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. A prior-year restatement with no note explaining what changed already sat in the file.
What we did for A business preparing for sale, Brampton, Ontario
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A business preparing for sale, Brampton, Ontario
Growth was absorbed without a compliance failure. $47,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · Planning that cut the bill
Remuneration Review Saved $55,000 Across Corporate And Personal Returns — Restating Corporation, Edmonton
Client: A corporation restating a prior year · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Combined saving$55,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A corporation restating a prior year, Edmonton, Alberta
Nothing was wrong at a corporation restating a prior year in Edmonton, Alberta. 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 for A corporation restating a prior year, Edmonton, Alberta
We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. We 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 corporation restating a prior year, Edmonton, Alberta
$55,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 3 · Cash and remittance control
Instalments Rebased, $82,000 Of Cash Returned To The Business — Covenant-Bound Borrower, Moncton
Client: A company under a bank covenant · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Cash returned$82,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A company under a bank covenant, Moncton, New Brunswick
A company under a bank covenant in Moncton, New Brunswick was paying instalments calculated on a prior year. That year no longer reflected the business. Statements delivered five months after year-end, past the covenant deadline was tying up $82,000 of cash.
What we did for A company under a bank covenant, Moncton, New Brunswick
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise.
The result — A company under a bank covenant, Moncton, New Brunswick
$82,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $3,000 In Unclaimed Input Tax Found — Bonded Work Bidder, Saskatoon
Client: A contractor bidding on bonded work · Where: Saskatoon, Saskatchewan · Engagement: 9 weeks, fixed fee
Unclaimed tax found$3,000
Records rebuilt22 months
ProcessDocumented
The situation — A contractor bidding on bonded work, Saskatoon, Saskatchewan
A contractor bidding on bonded work in Saskatoon, Saskatchewan could not answer basic questions about its own numbers. A bank asking for a review engagement while the file only supported a compilation sat between the bank statements and the ledger.
What we did for A contractor bidding on bonded work, Saskatoon, Saskatchewan
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. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A contractor bidding on bonded work, Saskatoon, Saskatchewan
Records rebuilt and reconciled, $3,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $12,500 — Due-Diligence Vendor, Calgary
Client: A vendor assembling due-diligence records · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$12,500
Filed with17 days to spare
Next yearPapers ready
The situation — A vendor assembling due-diligence records, Calgary, Alberta
A vendor assembling due-diligence records in Calgary, Alberta was weeks away from the deadline for internal controls review. Behind that sat an insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries. The exposure if the date slipped was around $12,500.
What we did for A vendor assembling due-diligence records, Calgary, 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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A vendor assembling due-diligence records, Calgary, Alberta
Filed with 17 days to spare. $12,500 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Objection and relief
$68,000 Of Penalties And Interest Cancelled On Relief — Shareholder Buyout Corporation, Red Deer
Client: A corporation entering a shareholder buyout · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$68,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A corporation entering a shareholder buyout, Red Deer, Alberta
An assessment of $68,000 landed at a corporation entering a shareholder buyout in Red Deer, Alberta following a desk review. It turned on an unusual revenue recognition policy that appeared nowhere in the basis-of-accounting note. The auditor had not seen the records behind it.
What we did for A corporation entering a shareholder buyout, Red Deer, Alberta
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A corporation entering a shareholder buyout, Red Deer, Alberta
$68,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
