How to Survive a CRA Audit: A Guide for Canadian Businesses
Why Businesses Get Audited
The CRA selects businesses for audit based on several factors: inconsistencies in filings, industry-specific risk profiles, random selection, and tips. Being audited doesn't mean you did something wrong — but being unprepared can make it much worse.
What the CRA Looks For
During an audit, CRA auditors typically examine source documents (receipts, invoices, contracts), bank statements and reconciliations, payroll records and T4s, HST/GST documentation, and vehicle and home office expense logs.
How to Prepare
The best audit preparation happens year-round, not when the letter arrives. Businesses with monthly professional bookkeeping are inherently audit-ready because their records are organized, reconciled, and documented continuously.
Immediate Steps When Notified
- Don't ignore the notice — respond within the specified timeframe
- Gather all requested documentation
- Review your returns for the audit period
- Consider professional representation
The Fusion Financial Advantage
Our clients rarely face audit complications because their books are maintained to audit-ready standards every single month. We also represent clients during CRA interactions, reducing stress and ensuring compliance. Reach out if you need audit support.