CRA Representation · Financial Statements
CRA audit help and financial statement engagements in Calgary.
If CRA sent you something, bring it to me before you respond. I deal with them directly so you stop getting the letters.
First step
Got a letter from CRA? Here’s what to do.
Don’t ignore it. Most CRA correspondence has a 30-day response window. Missing it can turn a routine review into an automatic reassessment that you then have to fight to undo.
Don’t panic. The vast majority of CRA letters are routine reviews asking you to back up a deduction or credit you claimed. They’re not accusations.
Gather everything they mention. Receipts, slips, contracts, the year’s tax return, whatever they’re asking about. Make digital copies.
Then bring it to me before you reply. The first response sets the tone. The wrong answer to a simple letter can deepen the review unnecessarily.
Reviews vs audits
What CRA actually sent you.
Most people use “audit” to describe anything CRA does. Technically they’re different things, and the difference matters.
Pre-assessment review
CRA pulls your return before assessing it and asks for backup on something specific, usually medical, donations, employment expenses, or a tuition transfer. Quick turnaround, usually resolved in 30–60 days.
Post-assessment review
Same idea, but CRA already assessed your return and is now double-checking. Most common kind of letter. You have to provide the backup or CRA reassesses to remove the claim.
Audit
A field audit (or desk audit) where an auditor reviews your records in detail. Common triggers: round-number deductions, large changes year-over-year, industry red flags. Takes longer and goes deeper than a review.
What I handle
The full range of CRA work.
- T1 personal tax reviews and audits
- T2 corporate audits and reassessments
- GST/HST audits and post-filing reviews
- Payroll trust examinations
- Post-assessment reassessments and adjustments (T1-ADJ, T2 amendments)
- Notices of Objection (formal appeals within CRA)
- Voluntary disclosures for unreported income or missed filings
- Late-filing penalty relief and taxpayer relief applications
How representation works
I stand between you and CRA.
Step 1. You sign a CRA AUT-01 authorization. That gives me access to your CRA account and lets me speak with them on your behalf.
Step 2. I review their letter and what triggered it. We talk through your records.
Step 3. I draft and send the response, with documentation organized the way auditors expect to see it.
Step 4. Any follow-up calls and letters go to me. You stop getting their mail. I tell you when there’s something you need to know.
Step 5. Resolution. Either CRA accepts the response (most common), they reassess (with our calculations agreed), or we escalate via Notice of Objection.
Compilation & review engagements
Financial statements for banks, landlords, and buyers.
Sometimes you need formal financial statements signed by a CPA, for an operating loan, a commercial lease, a grant application, or a buyer doing due diligence.
Compilation (NTR)
Formally a Compilation Engagement, sometimes still called a Notice to Reader. I prepare financial statements based on the information you provide, without auditing or reviewing it. Cheapest level of engagement and accepted by most lenders for small business loans.
Review engagement
A step up: I perform analytical procedures and ask questions of management to provide limited assurance that the statements are plausible. Required by some lenders for mid-sized loans and by some shareholder agreements. More expensive than a compilation, less than an audit.
Full audits are usually only required by public-interest entities, large loans, or specific grant programs. If you’re told you need one, get advice before assuming, sometimes a review is enough.
Pricing
How a consultation works.
Audit representation and financial statement engagements are priced as fixed-fee engagements, scoped per situation. On a 30-minute call I’ll ask what CRA is asking about, what years and what amounts are at stake, and what records you have. From that I scope the work and quote upfront.
If you’re responding to something time-sensitive, mention the response deadline on the call. We’ll prioritize accordingly.
Service areas
Calgary and nearby.
The office is in northeast Calgary, but most of my work happens by email, phone, and secure file upload. I take clients from across Calgary, Airdrie, Okotoks, and Cochrane, and a fair number from further afield once they’re used to working remotely.
- Calgary
- Airdrie
- Okotoks
- Cochrane
FAQ
Frequently asked questions
How long do CRA audits take?
A simple post-assessment review (the most common kind) usually wraps in 60–90 days once you respond. A field audit on a small business takes 3–6 months. Larger or more complex audits can run a year or longer. Most of that time is CRA’s, not yours, your job is to respond quickly and completely when they ask.
Can I represent myself?
Legally, yes. Practically, I’d rather you didn’t. The first response sets the tone for everything that follows, and CRA officers note inconsistencies. A small mistake in your first letter can turn a routine review into a deeper look. The cost of representation is usually a small fraction of what a bad outcome would cost.
What documents do I need to keep, and for how long?
CRA requires you to keep tax records for six years from the end of the year they relate to. For corporations, six years from the end of the fiscal period. Some records (real estate, capital assets, share purchases) need to be kept longer, basically until two years after you’ve disposed of the asset and reported it.
What if I disagree with the result?
You can file a formal Notice of Objection within 90 days of the reassessment. If that doesn’t resolve it, the next step is the Tax Court of Canada. I handle objections directly. Tax Court typically requires a tax lawyer, but I can refer you and stay involved as the accountant.
What’s voluntary disclosure?
CRA’s Voluntary Disclosures Program lets you come forward with unreported income, missed filings, or other issues before they catch you. Done correctly, you pay the tax owing and interest, but penalties are usually waived. Done late or incorrectly, you lose access to the program. Get advice before disclosing.
Do banks and landlords accept compiled financial statements?
For most small business situations, operating loans, equipment leases, commercial leases, yes. A compilation engagement (formerly called Notice to Reader) is the most common level and is accepted by most lenders. Larger loans or specific lender requirements may require a review or audit engagement.
How is a review engagement different from an audit?
A compilation organizes your financial information without testing it. A review engagement adds limited assurance, analytical procedures and inquiry, but not detailed testing. An audit is the highest level: detailed testing of transactions and balances, with positive assurance. Compilation is cheapest, audit is most expensive. You pick based on what your lender or stakeholder requires.
If CRA sent you something, don’t sit on it.
Book a 30-minute call. Bring the letter. We’ll get a plan together before the response window closes.