12th February 2016
Businesses and ordinary taxpayers use the services of professional accountants because they want to reduce a complex process to simple, manageable steps – while minimizing the risk of costly audits, enquiries, investigations or reviews by the Canada Revenue Agency.
For true protection against the myriad of financial advisory costs associated with government scrutiny, Audit Shield is a necessary addition to the services provided by professional accountants. Underwritten by certain underwriters at Lloyd’s, Audit Shield has a proven track record of covering the unanticipated financial services costs made necessary by the government singling out individual people or businesses for detailed examination of their records – whether they find mistakes or not.
Here’s how it works. When a professional accountant signs off on a financial statement for tax purposes, that may or may not be the end of their involvement in the issue. If all goes well, life moves on for all parties involved. But if the CRA decides to take a closer look, they have the right to demand proof for every part of that statement. The exacting standards of their official reviews often make it necessary for teams of accountants (and sometimes other experts) to spend a great deal of time preparing that proof – time which often needs to be billed, and must in the end be paid by their client.
What started off as a way to minimize risk, could therefore end up with costs spiraling out of control even before the CRA pronounces its verdict on the actual content of their audit or review.
That’s where Audit Shield steps in. Client accounting firms of Accountancy Insurance’s flagship offering are covered for those additional professional accounting costs, in the event of government investigation. As long as the government opens its enquiry while you are covered by Audit Shield – even if that enquiry is aimed at examining previously-filed financial statements – Accountancy Insurance will cover those additional fees for accountants and experts.
Accounting services which do not offer this extra protection are essentially offering partial coverage: Their clients may be less likely to be investigated than they would be if they’d prepared their statements themselves, but if they are investigated anyway, they will likely be exposed to significant additional accounting fees nonetheless.
Over 2500 accounting firms across Canada and Australasia have taken up Audit Shield and are now offering it to their clients. The number continues to grow, as more and more accountants agree that by offering complete coverage against risk, they are indeed looking out for the best interests of their customers – who in turn appreciate the associated benefits.
Security needs to be backed up by solid financial resources. Accountancy Insurance’s Audit Shield, which is underwritten by certain underwriters at Lloyd’s, allows for us to be there for our client accounting firms when they need it.
With recent changes in government and in Canadian law, taxpayers and businesses in Ontario deserve the comfort of knowing that their own tax filings can be prepared simply, professionally, and without any unwelcome surprises. Contact us at Accountancy Insurance to find out more about how we can help.