Auditing Services in Canada
Canadian companies required to undergo statutory audits — public companies, certain regulated entities, and businesses with lender or investor covenants — must engage CPA firms conducting audits under Canadian Auditing Standards (CAS).
Canadian companies required to undergo statutory audits — public companies, certain regulated entities, and businesses with lender or investor covenants — must engage CPA firms conducting audits under Canadian Auditing Standards (CAS). Fintax Support Limited prepares ASPE or IFRS audit-ready financial statements, compiles CAS-compliant working papers, and coordinates with your external CPA auditor. We reconcile audited figures to CRA T2 returns, GST/HST filings, and SR&ED claims, and support CRA audit examinations with detailed schedules.
Regulatory Framework
Public companies in Canada must have audits conducted by CPA firms registered with the Canadian Public Accountability Board (CPAB). Private companies may require audits based on lending agreements, regulatory requirements, or shareholder agreements. CRA may audit T2 returns within three or four years (or longer in cases of misrepresentation) and cross-reference audited financial statements.
Our Auditing Services in Canada
Statutory Audits (CAS-Compliant)
Prepare for statutory financial statement audits conducted under Canadian Auditing Standards (CAS) — converged with International Standards on Auditing (ISA) and published in the CPA Canada Handbook. We assemble ASPE or IFRS financial statements, CAS-compliant working papers, and PBC schedules so your external CPA firm can issue an unmodified opinion efficiently — whether required by CPAB-registered auditors for public companies, lenders, or shareholders who have not waived the audit under the Canada Business Corporations Act.
CAS/ISA working papers
Trial balances, lead schedules, and flux analyses indexed to CPA Canada Handbook Part I auditing standards.
ASPE or IFRS financial statements
Balance sheet, income statement, cash flows, and notes prepared before external CPA auditor engagement.
Substantive testing support
PBC schedules prepared for cash, revenue, receivables, and payables testing per the auditor's programme.
CBCA and provincial alignment
Audited accounts structured for Corporations Canada annual returns and provincial corporate registries.
How It Works
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and ASPE or IFRS compliance gaps before fieldwork begins.
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
Report issuance coordination
Finalise management representation letter, subsequent events review, and board approval for audit report issuance.
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and ASPE or IFRS compliance gaps before fieldwork begins.
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
Report issuance coordination
Finalise management representation letter, subsequent events review, and board approval for audit report issuance.
Statutory audits under Canadian Auditing Standards (CAS) — published in the CPA Canada Handbook Part I and converged with International Standards on Auditing (ISA) — provide reasonable assurance that ASPE or IFRS financial statements are free of material misstatement. Public companies must engage CPA firms registered with the Canadian Public Accountability Board (CPAB). Most private corporations under the Canada Business Corporations Act (CBCA) may avoid a statutory audit through a unanimous shareholder audit waiver, but banks, investors, and regulated entities frequently require audited statements regardless. We prepare audit-ready working papers including adjusted trial balances, account reconciliations, related-party disclosures, and going-concern analyses before your external CPA begins CAS fieldwork. Proper preparation reduces billable audit hours, accelerates report issuance for lender covenant deadlines, and reconciles audited figures to CRA T2 returns and GST/HST filings.
Common Questions
Review Engagements (CSRE 2400)
Obtain limited assurance through review engagements conducted under CSRE 2400 — the Canadian Standard on Review Engagements published in the CPA Canada Handbook Part II. Reviews provide inquiry-and-analytical-procedure-based comfort when a full CAS audit is not required by lenders, investors, or governance bodies. We prepare ASPE or IFRS financial statements and supporting workpapers so your CPA can issue a review engagement report efficiently.
CSRE 2400 compliance
Financial statements and workpapers structured for limited assurance review procedures under CPA Canada Handbook Part II.
Analytical procedures
Ratio analysis, trend comparisons, and expectation development supporting the review engagement programme.
Management inquiry documentation
Inquiry responses and corroborating evidence organised for CPA review of significant balances and transactions.
Assurance level clarity
Review provides limited assurance — engagement letter sets expectations distinct from a reasonable assurance audit.
How It Works
Engagement scoping
Confirm review engagement is acceptable to lenders or stakeholders and draft CSRE 2400 engagement letter terms.
Financial statement preparation
Prepare ASPE or IFRS financial statements with supporting schedules and reconciliations for review procedures.
Review procedures support
Respond to CPA inquiries, provide analytical procedure inputs, and resolve exceptions during review fieldwork.
Review report coordination
Support management representation letter and board approval for review engagement report issuance.
Engagement scoping
Confirm review engagement is acceptable to lenders or stakeholders and draft CSRE 2400 engagement letter terms.
Financial statement preparation
Prepare ASPE or IFRS financial statements with supporting schedules and reconciliations for review procedures.
Review procedures support
Respond to CPA inquiries, provide analytical procedure inputs, and resolve exceptions during review fieldwork.
Review report coordination
Support management representation letter and board approval for review engagement report issuance.
Review engagements under CSRE 2400 — published in the CPA Canada Handbook Part II — provide limited assurance that nothing has come to the practitioner's attention causing them to believe the financial statements are not prepared in accordance with ASPE or IFRS. Unlike CAS audits providing reasonable assurance, reviews rely primarily on inquiry of management and analytical procedures without the extensive substantive testing of balances required in an audit. Reviews cost significantly less than full CAS audits and are accepted by many Canadian community banks, credit unions, and private investors for companies that have waived statutory audit requirements under CBCA unanimous shareholder resolutions. CSRE 2400 does not satisfy CPAB-regulated public company reporting, OSFI regulatory requirements, or federal funding audit thresholds that mandate full CAS audits. We prepare complete financial statements and supporting schedules so your CPA can perform review procedures without delays.
Common Questions
Compilation Engagements
Present management's financial information in the form of financial statements through compilation engagements under CSRS 4200 — the Compilation of Financial Information standard in the CPA Canada Handbook Part IV. Compilations provide no assurance on accuracy or completeness, making them the most cost-effective option for internal management reporting, franchise submissions, and stakeholders who understand they receive no independent verification.
CSRS 4200 compliance
Financial data assembled into statement format per CPA Canada Handbook Part IV compilation requirements.
Management basis clarity
Compilation report explicitly disclaims assurance — engagement letter sets expectations before work begins.
ASPE or IFRS presentation
Financial statements formatted under applicable accounting framework from management-provided records.
Cost-effective reporting
Lowest-cost external accountant engagement suitable for internal use and non-assurance stakeholders.
How It Works
Engagement letter and scope
Confirm compilation engagement terms under CSRS 4200 and identify the applicable accounting framework.
Data collection and assembly
Gather trial balance, supporting schedules, and management records for financial statement compilation.
Financial statement preparation
Present management's financial information in ASPE or IFRS statement format without verification procedures.
Compilation report issuance
Coordinate compilation report with management acknowledgement that no assurance is provided.
Engagement letter and scope
Confirm compilation engagement terms under CSRS 4200 and identify the applicable accounting framework.
Data collection and assembly
Gather trial balance, supporting schedules, and management records for financial statement compilation.
Financial statement preparation
Present management's financial information in ASPE or IFRS statement format without verification procedures.
Compilation report issuance
Coordinate compilation report with management acknowledgement that no assurance is provided.
Compilation engagements under CSRS 4200 — published in the CPA Canada Handbook Part IV — involve presenting management's financial information in the form of financial statements without performing audit or review procedures. The CPA does not verify balances, perform analytical procedures, or confirm accounts — they organise management's data into statement format and issue a compilation report that explicitly disclaims any assurance on accuracy or completeness. Compilations are appropriate for internal management reporting, preliminary lender discussions, and situations where stakeholders understand they receive no independent verification. They do not satisfy bank covenants requiring review or audit assurance, CPAB public company requirements, or federal funding audit thresholds. We maintain clear engagement documentation distinguishing compilation from CSRE 2400 reviews and CAS audits so all parties understand the assurance level received.
Common Questions
Internal Audit & Management Review
Evaluate internal controls, operational processes, and financial reporting workflows through structured internal audit and management review programmes. Internal audit identifies control weaknesses before your external CPA auditor or CRA examination does — reducing fraud risk, qualified opinions, and operational inefficiencies across your Canadian organisation.
Control environment assessment
Three Lines Model evaluation of entity-level controls, risk assessment, and monitoring activities.
Process walkthrough testing
Transaction-level walkthroughs for revenue, procurement, payroll, and treasury cycles documented with evidence.
Deficiency identification
Control deficiencies classified and prioritised with remediation timelines before external audit fieldwork.
Management action plans
Remediation roadmaps with ownership assignments and board reporting for each identified control gap.
How It Works
Risk assessment and scoping
Identify high-risk processes, entity-level controls, and ASPE or IFRS-relevant areas based on your industry and size.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and the board with severity classifications and root causes.
Remediation tracking
Monitor management's corrective actions through follow-up testing before external CPA audit fieldwork.
Risk assessment and scoping
Identify high-risk processes, entity-level controls, and ASPE or IFRS-relevant areas based on your industry and size.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and the board with severity classifications and root causes.
Remediation tracking
Monitor management's corrective actions through follow-up testing before external CPA audit fieldwork.
Internal audit and management review services evaluate whether your organisation's controls over financial reporting and operations are designed and operating effectively. We apply the Three Lines Model and COSO principles referenced by Canadian CPA firms when assessing control environments under CAS 315 (Identifying and Assessing the Risks of Material Misstatement). Our engagements include entity-level control assessment, process walkthroughs for revenue recognition under ASPE Section 3400, procurement and disbursement cycles, payroll controls including CRA remittance compliance, and IT general controls. Findings are classified by severity with clear remediation plans — the same discipline external auditors apply when evaluating control deficiencies during CAS fieldwork. Remediation before your statutory audit reduces the risk of qualified opinions, scope limitations, and repeat findings that increase audit costs year over year.
Common Questions
CRA Tax Audit Support
Defend your business during Canada Revenue Agency examinations with organised substantiation, professional representation, and structured responses to audit notices. CRA tax audits examine whether your T2 corporate, T1 personal, or GST/HST filings match your books and third-party reported income — we reconstruct records and negotiate adjustments to minimise liability, interest, and gross negligence penalties.
Authorised representative support
Form RC59 or T1013 filed so we communicate directly with CRA auditors and appeals officers on your behalf.
Examination response preparation
Organised schedules substantiating T2 deductions, SR&ED claims, GST/HST input tax credits, and payroll remittances.
Record reconstruction
Missing receipts and incomplete books rebuilt from bank records to support challenged items under CRA review.
Penalty and interest advocacy
Voluntary disclosures, taxpayer relief requests, and gross negligence penalty defences pursued where applicable.
How It Works
Notice analysis and representation setup
Review CRA examination letter, identify audit issues, and file Form RC59 or T1013 for authorised representation.
Document assembly
Gather books, bank records, receipts, and third-party slips supporting each item under CRA examination.
Audit response and interview support
Prepare written responses, attend CRA interviews, and present substantiation for each proposed adjustment.
Resolution and appeals
Negotiate final reassessment, request taxpayer relief, or file objection to the Tax Court of Canada if required.
Notice analysis and representation setup
Review CRA examination letter, identify audit issues, and file Form RC59 or T1013 for authorised representation.
Document assembly
Gather books, bank records, receipts, and third-party slips supporting each item under CRA examination.
Audit response and interview support
Prepare written responses, attend CRA interviews, and present substantiation for each proposed adjustment.
Resolution and appeals
Negotiate final reassessment, request taxpayer relief, or file objection to the Tax Court of Canada if required.
CRA tax audits differ fundamentally from CAS financial statement audits — the CRA examines whether your filed T2 return accurately reports taxable income and allowable deductions under the Income Tax Act, not whether financial statements comply with ASPE or IFRS. Common triggers include mismatched T4/T5 information slips, SR&ED claim reviews, GST/HST input tax credit examinations, and transfer pricing inquiries for related-party transactions. CRA may audit within the normal reassessment period of three years (or four years for certain corporations) and longer in cases of misrepresentation or gross negligence under section 163 of the Income Tax Act. We file authorised representative forms, prepare reconciliations between book income and Schedule 1 taxable income, and defend SR&ED Form T661 claims during CRA technical and financial reviews. For unagreed reassessments, we file objections within the 90-day deadline and represent clients through the CRA Appeals Division.
Common Questions
Not-for-Profit & Charity Audits
Prepare for independent audit or review of registered charities and not-for-profit organisations under CRA Charities Directorate requirements and ASPE Part III or ASNPO standards. We assemble T3010 supporting schedules, fund accounting records, and restricted donation disclosures so your external CPA can complete the engagement within Charities Directorate filing deadlines.
Charities Directorate compliance
Accounts prepared per ASNPO standards with T3010 Registered Charity Information Return supporting schedules.
Revenue threshold assessment
Audit or review requirements determined based on gross revenue, assets, and Charities Directorate rules.
External audit preparation
PBC packs for CPA auditors when gross revenue exceeds $250,000 or when governing documents require audit.
Restricted and endowment funds
Fund balances reconciled with donor restrictions, grant conditions, and endowment accounting requirements.
How It Works
Reporting requirement assessment
Determine whether compilation, review, or full audit applies based on revenue, assets, and charity registration status.
ASNPO accounts preparation
Prepare not-for-profit financial statements with fund analysis, notes, and required ASNPO disclosures.
Auditor workpaper assembly
Compile bank reconciliations, donation schedules, payroll records, and restricted fund movements for CPA review.
T3010 filing support
Submit Registered Charity Information Return and financial statements to CRA Charities Directorate within six months of year-end.
Reporting requirement assessment
Determine whether compilation, review, or full audit applies based on revenue, assets, and charity registration status.
ASNPO accounts preparation
Prepare not-for-profit financial statements with fund analysis, notes, and required ASNPO disclosures.
Auditor workpaper assembly
Compile bank reconciliations, donation schedules, payroll records, and restricted fund movements for CPA review.
T3010 filing support
Submit Registered Charity Information Return and financial statements to CRA Charities Directorate within six months of year-end.
Registered charities in Canada must file Form T3010 — the Registered Charity Information Return — with the CRA Charities Directorate within six months of their fiscal year-end. Charities with gross revenue exceeding $250,000 generally require an independent review or audit by a qualified CPA depending on revenue level and governing document requirements. Financial statements for not-for-profit organisations follow ASPE Part III or the Accounting Standards for Not-for-Profit Organizations (ASNPO) in the CPA Canada Handbook. We prepare ASNPO-compliant accounts, donation and fundraising schedules, and fund accounting distinguishing unrestricted, restricted, and endowment funds. Proper preparation ensures timely T3010 submission — failure to file can result in revocation of registered charity status. Audited or reviewed statements also satisfy provincial incorporation requirements and donor due diligence expectations.
Common Questions
Grant Compliance Audits
Prepare for grant compliance audits and funder-mandated assurance reviews required by federal funding programs, provincial grant bodies, and institutional funders across Canada. We assemble expenditure evidence, outcome reporting schedules, and restricted fund reconciliations so funders receive the assurance they require under contribution agreement terms and Treasury Board Secretariat audit policies.
Grant expenditure reconciliation
Eligible costs mapped to grant budgets with supporting invoices, timesheets, and apportionment calculations.
Federal funding audit preparation
Accounts and schedules prepared for funder audits, agreed-upon procedures, or CSRE 2400 review engagements.
Restricted fund compliance
Grant income and expenditure tracked separately with conditions monitored throughout the funding period.
Matching contribution verification
Matched contribution evidence compiled for federal, provincial, and institutional grant compliance requirements.
How It Works
Grant agreement review
Analyse funder terms, eligible cost definitions, reporting deadlines, and assurance requirements per contribution agreement.
Expenditure tracking setup
Configure nominal codes and restricted funds to segregate grant income and eligible expenditure by programme.
Compliance evidence assembly
Compile invoices, payroll allocations, outcome reports, and match funding evidence for auditor or funder review.
Assurance engagement support
Support funder-appointed auditors or independent reviewers and resolve queries before grant sign-off.
Grant agreement review
Analyse funder terms, eligible cost definitions, reporting deadlines, and assurance requirements per contribution agreement.
Expenditure tracking setup
Configure nominal codes and restricted funds to segregate grant income and eligible expenditure by programme.
Compliance evidence assembly
Compile invoices, payroll allocations, outcome reports, and match funding evidence for auditor or funder review.
Assurance engagement support
Support funder-appointed auditors or independent reviewers and resolve queries before grant sign-off.
Canadian grant funders — including federal departments under Treasury Board Secretariat contribution agreement policies, provincial ministries, and charitable foundations — frequently require independent assurance over how funds were spent. Requirements range from CSRS 4200 compilations for small grants to CSRE 2400 reviews or full CAS audits where charity revenue thresholds are met. Contribution agreements specify eligible costs, matching obligations, outcome reporting, and clawback provisions for non-compliance. We track expenditure against grant budgets in restricted funds, prepare reconciliation schedules linking general ledger postings to funder claim forms, and assemble evidence for federal funding audits. Proper grant accounting under ASNPO or ASPE prevents questioned costs, funding recovery, and reputational damage with public sector and institutional funders.
Common Questions
Inventory & Fixed Asset Verification
Design and support physical inventory counts and fixed asset verification procedures required under CAS audit programmes. Inventory observation and capital asset roll-forward testing are core CAS fieldwork procedures — we prepare count documentation, cut-off schedules, and depreciation reconciliations so your external CPA can complete substantive testing efficiently.
Physical inventory counts
Count procedures designed per CAS 501 requirements with cut-off testing for goods in transit and consignment.
Fixed asset roll-forward schedules
Additions, disposals, and CCA depreciation reconciled to general ledger and T2 capital cost allowance claims.
Obsolescence and impairment review
Slow-moving inventory and asset impairment analyses under ASPE Sections 3031 and 3064 before audit fieldwork.
Multi-location coordination
Inventory counts synchronised across warehouses, retail locations, and third-party logistics facilities.
How It Works
Count planning and instructions
Design count procedures, assign teams, and prepare count sheets aligned to CAS physical inventory observation requirements.
Physical count execution
Supervise or coordinate inventory counts with cut-off documentation for receipts, shipments, and returns.
Fixed asset verification
Verify asset existence, reconcile the fixed asset register to general ledger, and test CCA class allocations.
Auditor fieldwork support
Provide count results, variance analyses, and asset roll-forward schedules for CPA substantive testing.
Count planning and instructions
Design count procedures, assign teams, and prepare count sheets aligned to CAS physical inventory observation requirements.
Physical count execution
Supervise or coordinate inventory counts with cut-off documentation for receipts, shipments, and returns.
Fixed asset verification
Verify asset existence, reconcile the fixed asset register to general ledger, and test CCA class allocations.
Auditor fieldwork support
Provide count results, variance analyses, and asset roll-forward schedules for CPA substantive testing.
Inventory and fixed asset verification are core CAS audit procedures under CAS 501 (Audit Evidence — Specific Considerations for Selected Items) for physical inventory observation and CAS 540 (Auditing Accounting Estimates) for valuation and impairment testing. Auditors must obtain sufficient appropriate evidence that inventory exists, is properly valued at lower of cost and net realisable value under ASPE Section 3031, and that fixed assets are recorded at correct cost basis with appropriate depreciation and capital cost allowance under ASPE Section 3064. We design and supervise physical inventory counts — including cut-off testing for goods in transit — and prepare fixed asset roll-forward schedules reconciling additions, disposals, and depreciation to the general ledger and T2 CCA schedules. Obsolete and slow-moving inventory reserve analyses prevent overstatement that triggers audit adjustments and CRA scrutiny of cost of goods sold deductions.
Common Questions
External Auditor Coordination
Serve as your single point of contact for external CPA auditor communications — managing PBC requests, fieldwork scheduling, query resolution, and report issuance. Proactive auditor coordination minimises business disruption and prevents qualified opinions caused by incomplete responses or missed deadlines during CAS, CSRE 2400, or CSRS 4200 engagements.
Single liaison point
All auditor communications channelled through us — reducing director and finance team disruption during fieldwork.
PBC list management
Auditor request lists tracked, prioritised, and fulfilled with indexed evidence packages on agreed timelines.
Fieldwork scheduling
On-site and remote audit sessions coordinated with key personnel availability and inventory count dates.
Report issuance support
Management representation letter, subsequent events review, and board papers prepared for audit sign-off.
How It Works
Engagement letter review
Review auditor scope, timeline, fee estimate, and PBC requirements before fieldwork commences.
PBC fulfilment and tracking
Manage provided-by-client schedule delivery with status tracking and escalation of overdue items.
Query resolution during fieldwork
Respond to auditor inquiries, provide substantiation, and negotiate adjustments before draft report stage.
Sign-off and filing coordination
Coordinate audit report signing, board approval, and Corporations Canada annual return filing deadlines.
Engagement letter review
Review auditor scope, timeline, fee estimate, and PBC requirements before fieldwork commences.
PBC fulfilment and tracking
Manage provided-by-client schedule delivery with status tracking and escalation of overdue items.
Query resolution during fieldwork
Respond to auditor inquiries, provide substantiation, and negotiate adjustments before draft report stage.
Sign-off and filing coordination
Coordinate audit report signing, board approval, and Corporations Canada annual return filing deadlines.
External auditor coordination manages the relationship between your organisation and your external CPA firm throughout CAS, CSRE 2400, or CSRS 4200 engagements under the CPA Canada Handbook. We review engagement letters for scope and fee proportionality, maintain PBC request trackers with clear ownership and deadlines, and respond to auditor inquiries with organised evidence packages. During fieldwork we coordinate access to personnel, systems, and documents — resolving testing exceptions before they escalate to audit adjustments. At completion we support management representation letters, subsequent events reviews, and board papers approving the financial statements. For group structures, we coordinate component entity PBC packs feeding into CAS 600 group audit programmes overseen by CPAB-registered firms. Effective liaison typically reduces total audit hours by twenty to thirty percent compared to uncoordinated engagements.
Common Questions
Frequently Asked Questions
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