6 Review Engagement 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 review engagement work, not a general example.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $20,500 Penalty Avoided — Company Refinancing Its Operating, Edmonton
Client: A company refinancing its operating line · Where: Edmonton, Alberta · Engagement: 4 weeks, fixed fee
Penalty avoided$20,500
Turnaround4 weeks
FiledOn time
The situation
A company refinancing its operating line in Edmonton, Alberta came to us 4 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 $20,500 before interest.
What we did
We worked backwards from the deadline. We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, 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 $20,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Backlog brought current
$42,000 Of Arbitrary Assessments Vacated After 7 Years — Not-For-Profit with a Bylaw, Mississauga
Client: A not-for-profit with a bylaw audit requirement · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Arbitrary tax vacated$42,000
Years brought current7
Account statusCurrent
The situation
7 years of unfiled returns had turned into notional assessments at a not-for-profit with a bylaw audit requirement in Mississauga, Ontario, with a buyer’s due-diligence list that the existing statement package could not answer underneath. Collections had already started.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 7 years were accepted as filed. $42,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
Case Study 3 · CRA review defended
Audit Defence Closed In 7 Weeks, $71,000 Cleared — Corporation with an Outside, Vancouver
Client: A corporation with an outside minority shareholder · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Proposed tax cleared$71,000
Review duration7 weeks
OutcomeNo change
The situation
A corporation with an outside minority shareholder in Vancouver, 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 came to $71,000.
What we did
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $71,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Cash and remittance control
$27,500 Of Working Capital Freed From The Tax Cycle — Business Applying for Government, Calgary
Client: A business applying for government funding · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Working capital freed$27,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A business applying for government funding in Calgary, Alberta was profitable on paper and short of cash every month. A bank asking for a review engagement while the file only supported a compilation explained most of the gap.
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 built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$27,500 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 5 · Objection and relief
$107,000 Of Penalties And Interest Cancelled On Relief — Co-Operative Reporting to Members, Toronto
Client: A co-operative reporting to members · Where: Toronto, Ontario · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$107,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $107,000 landed at a co-operative reporting to members in Toronto, Ontario 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 compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, then set out the legislative basis for the position alongside the documents supporting it.
The result
$107,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $455,000 Deferred — Business Preparing for Sale, Lethbridge
Client: A business preparing for sale · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Tax deferred$455,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a business preparing for sale in Lethbridge, Alberta had been discussed for years without a plan. A minute book with no resolutions behind a decade of dividends meant the transfer as contemplated would have been fully taxable.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$455,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
