6 worked Review Engagement Preparation 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 review engagement preparation work, not a specific client's file.
Case Study 1 · Cash and remittance control
$135,000 Of Working Capital Freed From The Tax Cycle — Member-Reporting Co-Operative, Regina
Client: A co-operative reporting to members · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Working capital freed$135,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A co-operative reporting to members, Regina, Saskatchewan
A co-operative reporting to members in Regina, Saskatchewan was profitable on paper and short of cash every month. A buyer’s due-diligence list that the existing statement package could not answer explained most of the gap.
What we did for A co-operative reporting to members, Regina, Saskatchewan
We read the shareholder agreement and the loan documents, established what level of assurance each user actually required, and scoped the engagement to the highest of them and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A co-operative reporting to members, Regina, Saskatchewan
$135,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 2 · Structure rebuilt
Corporate Structure Rebuilt For $48,000 Of Annual Savings — Late-Statement Business, London
Client: A business whose statements arrive late every year · Where: London, Ontario · Engagement: 9 weeks, fixed fee
Saving per year$48,000
DocumentationComplete
Transfer basisRollover
The situation — A business whose statements arrive late every year, London, Ontario
The structure at a business whose statements arrive late every year in London, Ontario had been set up years earlier for a business that no longer existed, and a prior-year restatement with no note explaining what changed had become expensive.
What we did for A business whose statements arrive late every year, London, Ontario
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A business whose statements arrive late every year, London, Ontario
$48,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Client: A not-for-profit with a bylaw audit requirement · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Proposed tax cleared$116,000
Review duration6 weeks
OutcomeNo change
The situation — A not-for-profit with a bylaw audit requirement, Surrey, British Columbia
A not-for-profit with a bylaw audit requirement in Surrey, British Columbia was selected for review after a bonding limit capped because the last statements were prepared on a cash basis showed up in the CRA's automated matching. The proposed adjustment on review engagement preparation came to $116,000.
What we did for A not-for-profit with a bylaw audit requirement, Surrey, British Columbia
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A not-for-profit with a bylaw audit requirement, Surrey, British Columbia
The review closed with no change. $116,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Records and systems rebuilt
15 Months Reconciled And $11,500 Of Input Tax Recovered — Government Funding Applicant, Ottawa
Client: A business applying for government funding · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Months reconciled15
Input tax recovered$11,500
Close time10 days
The situation — A business applying for government funding, Ottawa, Ontario
A business applying for government funding in Ottawa, Ontario was carrying statements delivered five months after year-end, past the covenant deadline. Nothing reconciled, and every filing started with 15 months of cleanup.
What we did for A business applying for government funding, Ottawa, Ontario
We rebuilt from source rather than correcting on top of the existing file. We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, then set the routine that keeps it clean.
The result — A business applying for government funding, Ottawa, Ontario
15 months reconciled to the bank. The close now takes 10 days, and $11,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Backlog brought current
Collections Halted And $72,000 Cut From A 4-Year Backlog — Review Engagement Candidate, Vancouver
Client: A company whose lender asked for a review engagement · Where: Vancouver, British Columbia · Engagement: 10 weeks, fixed fee
Balance reduced by$72,000
Backlog cleared4 years
CollectionsHalted
The situation — A company whose lender asked for a review engagement, Vancouver, British Columbia
By the time a company whose lender asked for a review engagement in Vancouver, British Columbia called, 4 years were outstanding and 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 company whose lender asked for a review engagement, Vancouver, British Columbia
We reconstructed the records year by year and described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. Each filing replaced an arbitrary assessment with a real one.
The result — A company whose lender asked for a review engagement, Vancouver, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $72,000, and a relief application addressed part of the accumulated interest.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $120,000 Of Cash Released — Refinancing Borrower, Lethbridge
Client: A company refinancing its operating line · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Cash released$120,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A company refinancing its operating line, Lethbridge, Alberta
Revenue at a company refinancing its operating line in Lethbridge, Alberta was up sharply and cash was tighter than ever. Underneath it sat an insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries.
What we did for A company refinancing its operating line, Lethbridge, Alberta
We prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A company refinancing its operating line, Lethbridge, Alberta
$120,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
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.
