6 Internal Controls Review 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 controls review work, not a general example.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $47,000 Freed — Company Under a Bank, Brampton
Client: A company under a bank covenant · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Cash freed$47,000
Compliance failuresNone
ReportingMonthly
The situation
A company under a bank covenant in Brampton, Ontario was opening in a second province — different filing obligations, a different payroll regime, and a prior-year restatement with no note explaining what changed already in the file.
What we did
We prepared a due-diligence-ready statement set with supporting schedules for each material balance and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
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 — Franchisee Reporting to Its, Edmonton
Client: A franchisee reporting to its franchisor · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Combined saving$55,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a franchisee reporting to its franchisor 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
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, 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
$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 — Contractor Bidding on Bonded, Moncton
Client: A contractor bidding on bonded work · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Cash returned$82,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A contractor bidding on bonded work in Moncton, New Brunswick 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 $82,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions.
The result
$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 — Business Preparing for Sale, Saskatoon
Client: A business preparing for sale · Where: Saskatoon, Saskatchewan · Engagement: 9 weeks, fixed fee
Unclaimed tax found$3,000
Records rebuilt22 months
ProcessDocumented
The situation
A business preparing for sale in Saskatoon, Saskatchewan could not answer basic questions about its own numbers, because 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
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, then documented the process so the work does not depend on any one person remembering how it was done.
The result
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 — Corporation Entering a Shareholder, Calgary
Client: A corporation entering a shareholder buyout · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$12,500
Filed with17 days to spare
Next yearPapers ready
The situation
With the deadline for internal controls review weeks away, a corporation entering a shareholder buyout in Calgary, Alberta was carrying a buyer’s due-diligence list that the existing statement package could not answer. The exposure if the date slipped was around $12,500.
What we did
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
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 — Co-Operative Reporting to Members, Red Deer
Client: A co-operative reporting to members · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$68,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $68,000 landed at a co-operative reporting to members in Red Deer, Alberta following a desk review. The auditor had not seen the records behind a prior-year restatement with no note explaining what changed.
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, then set out the legislative basis for the position alongside the documents supporting it.
The result
$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 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.
