A CRA audit is a systematic examination of a taxpayer's books and records to verify that income, deductions and credits were reported correctly.
An audit is more thorough than a routine review. The CRA assigns an auditor who examines your records for one or more tax years, requesting documents, asking questions, and testing whether what you filed matches your books. Selection can be risk-based, from figures outside industry norms or repeated losses, or effectively random.
The process runs from an initial contact letter, through information requests and examination, to a proposal letter setting out any adjustments before a reassessment issues. Contemporaneous, well-organised records are the best defence, they turn an audit from a reconstruction exercise into a straightforward verification.
The CRA selects your corporation for an audit of two years. You provide the general ledger, invoices and bank statements; because every figure is supported, the audit closes with no change rather than a reassessment.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
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