As a CPA in Canada, you know that audits are an unavoidable part of the tax landscape. The Canada Revenue Agency (CRA) conducts audits for a very broad range of reasons. Some of these are to ensure compliance, verify reported income, and assess eligibility for tax benefits and refunds. While audits are a routine function of the CRA, they can be time-consuming and costly for both your firm and your clients.
Key aspects of the CRA audit process
- How clients are selected for audit: The CRA uses risk assessments, data analysis, and industry benchmarks to select files for audit. Past compliance history, discrepancies in filings, and even random selection can also trigger an audit. Some audits are also simply conducted at random.
- How audits are conducted: Clients may be contacted by mail or phone, and the audit can take place at their business, your firm’s office, or a CRA office. The process typically involves a detailed examination of tax records, financial statements, and supporting documentation.
- What documentation is required: The CRA may request a range of documents, such as invoices, bank records, payroll information, and corporate financials.
- The outcome of an audit: Once an audit is completed, the CRA will issue a decision. If adjustments are required, a reassessment notice is sent, and the taxpayer has the right to dispute the findings or appeal if they disagree.
Why CPAs should offer Audit Shield to their clients
A CRA audit can be stressful and costly, not just for clients but also for CPAs handling the process. Responding to an audit requires time and resources, and professional fees can add up quickly.
Audit Shield is a comprehensive offering that covers the professional fees incurred in responding to an official audit, enquiry, investigation, or review of a filed return instigated by the CRA or other relevant government revenue agencies.
Benefits for your clients
Financial protection: Clients will not be burdened by unexpected accounting fees when facing responding to a CRA audit.
Peace of mind: Knowing that audit-related costs in responding are covered allows clients to focus on running their business or getting on with their lives.
Stronger risk management: Clients can rest assured that their tax affairs will be professionally handled without additional financial strain.
Benefits for your firm
Stronger client relationships: Offering Audit Shield demonstrates a proactive, client-first approach, adding tangible value to your services.
No more fee write-offs: Audit Shield covers the professional fees normally charged to your client when you assist them to respond to eligible official audits, enquiries, investigations or reviews of filed returns.
Win-win solution: There is no cost to you to offer the service to your clients.
CRA audits are an unavoidable part of tax compliance, and responding to them can be time-consuming and costly for both clients and CPAs. Audit Shield provides a comprehensive solution by covering the professional fees incurred when responding to an official audit, enquiry, investigation, or review initiated by the CRA or other relevant government revenue agencies.
By offering Audit Shield, CPAs can protect their clients from unexpected expenses, strengthen client relationships, and reinforce their position as trusted advisors.
Learn more about how Audit Shield can benefit your firm and clients today. Reach out to us to get started.
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Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients. Find out why.