6 worked Review Engagement 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 work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $20,500 Penalty Avoided — Government Funding Applicant, Edmonton
Client: A business applying for government funding · Where: Edmonton, Alberta · Engagement: 4 weeks, fixed fee
Penalty avoided$20,500
Turnaround4 weeks
FiledOn time
The situation — A business applying for government funding, Edmonton, Alberta
A business applying for government funding in Edmonton, Alberta came to us 4 weeks before its filing deadline. The file came with a bonding limit capped because the last statements were prepared on a cash basis. A late filing would have triggered a penalty of roughly $20,500 before interest.
What we did for A business applying for government funding, Edmonton, Alberta
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. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A business applying for government funding, Edmonton, Alberta
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 — Reporting Franchisee, Mississauga
Client: A franchisee reporting to its franchisor · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Arbitrary tax vacated$42,000
Years brought current7
Account statusCurrent
The situation — A franchisee reporting to its franchisor, Mississauga, Ontario
7 years of unfiled returns had turned into notional assessments at a franchisee reporting to its franchisor in Mississauga, Ontario. Underneath lay an insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries. Collections had already started.
What we did for A franchisee reporting to its franchisor, Mississauga, Ontario
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 filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A franchisee reporting to its franchisor, Mississauga, Ontario
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 — Minority-Shareholder Corporation, 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, Vancouver, British Columbia
A corporation with an outside minority shareholder in Vancouver, British Columbia was selected for review. A buyer’s due-diligence list that the existing statement package could not answer had shown up in the CRA's automated matching. The proposed adjustment on review engagement came to $71,000.
What we did for A corporation with an outside minority shareholder, Vancouver, 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 corporation with an outside minority shareholder, Vancouver, British Columbia
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 — Bonded Work Bidder, Calgary
Client: A contractor bidding on bonded work · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Working capital freed$27,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A contractor bidding on bonded work, Calgary, Alberta
A contractor bidding on bonded work in Calgary, Alberta was profitable on paper and short of cash every month. Statements delivered five months after year-end, past the covenant deadline explained most of the gap.
What we did for A contractor bidding on bonded work, Calgary, Alberta
We prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A contractor bidding on bonded work, Calgary, Alberta
$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 — Bylaw-Audit Non-Profit, Toronto
Client: A not-for-profit with a bylaw audit requirement · Where: Toronto, Ontario · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$107,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A not-for-profit with a bylaw audit requirement, Toronto, Ontario
An assessment of $107,000 landed at a not-for-profit with a bylaw audit requirement in Toronto, Ontario 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 not-for-profit with a bylaw audit requirement, Toronto, Ontario
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 not-for-profit with a bylaw audit requirement, Toronto, Ontario
$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 business preparing for sale, Lethbridge, Alberta
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 for A business preparing for sale, Lethbridge, 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 sequenced the steps so each one was complete and documented before the next depended on it.
The result — A business preparing for sale, Lethbridge, Alberta
$455,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
