Protection against additional fees.
Time spent on client services should never be compromised when responding to a review or audit initiated by the CRA.
Audit Shield is a no upfront cost solution for CPA accounting firms. It provides coverage for professional fees, both your own and those of other experts, when your client is subjected to a CRA review or audit.
With Audit Shield, the CPA and client can face a CRA review or audit side by side, responding as thoroughly as needed, without the burden of cost or stress. Reviews and audits may be unavoidable, but with Audit Shield, fee write-offs don’t have to be.
Why CPAs like Audit Shield.
- No COST solution, in fact you retain an admin fee each year
- No claim DEDUCTIBLE, and no minimum claim
- We handle the work of sending the offer to your clients, which goes on your letterhead
- If your client is subject to a review or audit – you claim 100% of your time responding (up to the sum insured)
- Claims are paid directly to you within 5 working days
All current and previously filed returns are covered, regardless of who prepared them.
Audit Shield at a glance.
The scope of Audit Shield is broad, starting with a simple post-assessment T1 slip request, extending to GST reviews (or HST or PST where applicable), and covering everything up to a full business audit.
Audit Shield also provides protection for reviews of CEWS, CERS, CRHP, THRP, HHBRP and LLP.
Our team takes care of all the administration, including printing and mailing, to invite your clients to participate, under a fee waiver service.
Join hundreds of CPA firms across Canada already offering Audit Shield.
An unexpected accounting bill during a CRA review can be difficult for clients to manage. By offering them a way to handle these additional expenses, you can also ensure you’re recovering your time for the work involved.
You’re invited to lock in a free, no-obligation Partner information session, available in person or virtually. It only takes around 30 minutes.
In this session, you’ll learn how some of Canada’s most proactive CPA firms are protecting their clients from surprise costs while avoiding the need to write off fees, all with the support of Audit Shield.
Dive in a little deeper.
CRA review activity remains consistent, with a particular focus on small businesses, self-employed individuals, and high-net-worth clients.
When they happen, reviews can be time-consuming and expensive, even for routine reviews, and clients don’t expect to pay additional fees when they occur.
Audit Shield provides reassurance, meaning when they really need it, your firm and clients are protected against unexpected costs.
Absorbing CRA review response related costs affects profitability and sets a precedent for unpaid work.
With Audit Shield, you can provide clients with a way to cover fees related to responding to CRA review activity while maintaining your firm’s revenue integrity.
Firms using Audit Shield report a more structured, sustainable approach to managing CRA audits responses without taking a financial hit.
Clients are often resistant to unexpected fees, leading to difficult conversations and potential relationship strain.
Audit Shield allows clients to budget for CRA audit related costs upfront, reducing pushback and improving client satisfaction.
Offering Audit Shield as a solution positions your firm as proactive and client focused. The point of Audit Shield is from your clients perspective of giving them relief from that payment or at the very least peace of mind. It is merely giving your clients a choice as to how they want to handle their exposure to the potential cost.
Audit Shield offers financial security against unpredictable events. When a CRA review happens, clients who opted in will appreciate the protection.
Audit Shield is a service used by thousands of CPA firms globally. Even if a client isn’t reviewed by the CRA, they gain reassurance knowing they are covered.
It is merely a choice, let your clients make that choice.
Audit Shield is fully managed, meaning minimal admin for your firm. We handle the process from start to finish, including client communications and claims.
The setup is straightforward, and many firms successfully integrate Audit Shield with minimal effort. Once in place, Audit Shield becomes an ongoing benefit with less time required in subsequent years. We do it for you.
Participation is entirely optional, and clients can choose whether or not to take up the offer. Many firms see strong uptake once clients understand the benefits, especially those who have faced reviews before.
Firms with Audit Shield generally report high client satisfaction due to the financial protection it provides.
That is fine if they choose not to participate, but the firm benefits because now the clients are aware and have made a choice as to how they want to handle the risk.
A small retail business in Ontario was selected for a GST/HST review by the CRA. The CRA requested detailed records of input tax credits over the past two years, suspecting discrepancies. The business owner, unfamiliar with tax laws, had incorrectly classified some expenses, leading to additional scrutiny. Their CPA spent time compiling documentation, reconciling records, and responding to CRA requests.
Outcome with Audit Shield: Since the business had Audit Shield, the CPA’s professional fees (over $7,000) were fully covered. The audit was resolved without any penalties, and the business owner avoided out-of-pocket expenses for the professional assistance required.
A self-employed consultant in British Columbia was randomly selected for a personal income tax processing review. The CRA questioned home office deductions and travel expenses claimed over the past three years. The consultant needed their CPA’s help to provide receipts, mileage logs, and justifications for their expenses. The review process lasted six months, with multiple CRA follow-ups.
Outcome with Audit Shield: The CPA’s fees, totalling $3,200, were covered under Audit Shield. Without it, the consultant would have had to pay these fees out of pocket, on top of managing their business operations.
A growing technology firm in Alberta underwent a payroll review, where the CRA reviewed worker classifications (employee vs. independent contractor). The CRA flagged several contractors as misclassified employees, requiring the firm to provide extensive documentation and justifications. Their CPA and lawyer had to review contracts, payroll records, and tax filings, leading to over $8,000 in professional fees.
Outcome with Audit Shield: Audit Shield covered the fees incurred in full, reducing the financial burden on the company. While the firm had to make minor adjustments to their payroll practices, the review was handled smoothly with professional support at no cost to them.
A doctor in Alberta running a private practice from home faced a CRA audit questioning their business use of home expenses. The CRA requested floor plans, utility bills, and calculations to determine if the deductions were reasonable. The doctor, unfamiliar with CRA rules, needed their CPA’s expertise to prepare the response, adjust claims, and liaise with the CRA. The CPA spent hours handling the review, with fees reaching $6,900.
Outcome with Audit Shield: The doctor’s Audit Shield coverage ensured all professional fees were covered in responding to the CRA. This allowed them to focus on their practice without worrying about unexpected costs.
A construction company in Manitoba was subject to a corporate tax review focusing on equipment depreciation and subcontractor payments. The company’s tax filings were complex, and the CRA requested numerous records. Their CPA and bookkeeper worked for three months preparing responses, engaging in negotiations, and clarifying tax treatments. The professional fees for the audit response exceeded $12,000.
Outcome with Audit Shield: Audit Shield fully covered the costs of handling the audit. The company avoided major financial disruptions and continued operations while the CPA managed the CRA enquiries.
Don’t just take our word for it, see what just a handful of client accounting firms in Canada had to say about Audit Shield.
We sat down with key professionals from Baker Tilly Canada to delve into the world of Audit Shield and its impact on their clients and the accounting industry as a whole.
Why Audit Shield? Todd Zanatta, Partner at Baker Tilly Sudbury, along with Bud Arnold Baker, Tilly GWD Tax Partner, Helen Orok from Baker Tilly GWD, and Thomas Blonde, Partner at Baker Tilly GWD, shed light on the decision-making process behind offering Audit Shield to their clients. Discover the strategic thinking that led these firms to provide this valuable service.
The individuals behind the insights:
- Todd Zanatta, Baker Tilly Sudbury, Partner
- Bud Arnold Baker, Tilly GWD, Tax Partner
- Helen Orok Baker Tilly GWD, Partner
- Thomas Blonde, Baker Tilly GWD, Partner
My personal experience with Audit Shield is that they look for every possible way they can argue that CRA activity falls within the items that are covered. They run a very ethical, client-centric business. In addition to avoiding “surprise audit costs”, the practitioner never has to think “is this worth fighting economically?”
I have lost count of how many times I have been able to tell a client “There’s no fee for that – you paid for Audit Shield”. That takes a lot of the sting out of a CRA review! If the client does not want coverage, the decision is theirs.
Kingston Ross Pasnak LLP, Edmonton AB
Hugh Neilson FCPA FCA TEP, Director – Taxation Services
As a tax specialist with almost 40 years of tax experience, this product could have saved clients significant fees that they have paid to have their tax enquiries covered. I encourage anyone in the business community to consider this. Our clients have been pleased with the option of using Audit Shield – the vast majority of corporate clients have opted in to the program.
Smith & West Chartered Professional Accountants, Ottawa ON
Thomas West, Tax Partner