How Canada Revenue Agency begins an Audit
Auditing by CRA is a way to monitor, inspect and examine, so that the imposition of taxes are managed in an equitable manner with respect and compliance in accordance with the Law, by Canadians taxpayers.
In general, a client is selected on the basis of a computerized list, audit projects, selective and secondary clients. Once the client is determined to be audited, you will receive a letter saying that you have been selected to be audited by a certain date, a list of the required documents such as; accounting, reports, invoices, legal registration, expense receipts, bank account, payroll, subcontracts, nature of it’s business, detail information of how the business is managed and other information in connection with your trade or business. Once the client receives the letter, and in turn get the service of a Representative or an External Auditor to represent according to the purposes and principles of auditing, as we have illustrated above.