CRA Limited-Scope Audit — Montreal CPA Firm Near You: Focus on One High-Risk Area

A CRA Limited-Scope Audit focuses on specific high-risk accounts or transactions within a taxpayer’s file. Unlike a full audit, it narrows attention to one or two potential problem areas such as GST/QST credits, travel expenses, shareholder loans, or payroll deductions. Mackisen CPA Montreal provides professional representation to ensure every targeted section of your return is supported by clear documentation and legal precision.

Legal Foundation

Law: Income Tax Act s.231.1; Excise Tax Act s.289; Tax Administration Act (Québec) s.34.
Jurisprudence: Canderel Ltd. v. Canada (1998 SCC) — income must be determined in accordance with well-accepted business principles and supported by verifiable evidence.

Why You Need a CPA for a Limited-Scope Audit

Even though limited in scope, these audits can quickly expand into full reassessments if discrepancies appear. CRA and Revenue Québec auditors look for patterns of omission, inadequate documentation, or misinterpretation of tax law. A CPA ensures that every requested document—no matter how small—builds a consistent, compliant narrative.

Mackisen CPA Montreal reviews each high-risk area of focus, reconstructs records, and provides complete cross-references between returns, receipts, and accounting systems.

Learning insight: A limited-scope audit is a test of consistency. A CPA ensures every answer matches the numbers across all filings.

What Mackisen CPA’s Limited-Scope Audit Representation Includes

• Identification of the CRA/ARQ targeted accounts or transactions.

• Preparation of reconciliations and evidence for each risk area.

• Documentation of source invoices, contracts, and supporting logs.

• Preparation of CPA-certified audit response packages.

• Legal coordination with tax counsel if required to ensure compliance.

Learning insight: Limited-scope doesn’t mean low-risk. It’s often the audit that defines whether CRA closes the file—or reopens the last five years.

Common Triggers for Limited-Scope Audits

• Repeated expense claims in the same category (e.g., travel, vehicle, or entertainment).

• High ratios of GST/QST input credits to revenue.

• Rental income inconsistencies or unreported related-party transactions.

• Significant payroll variances year-over-year.

• Claiming CCA or capital losses inconsistent with business type.

Mackisen CPA Montreal proactively identifies these triggers and strengthens your audit file before CRA or ARQ reviews begin.

How Mackisen CPA Manages Limited-Scope Audits

1. Reviews CRA or ARQ audit letter and defines the precise audit scope.

2. Collects all relevant supporting documentation and contracts.

3. Builds reconciliations aligning accounting records to filed returns.

4. Submits professional CPA-prepared responses with reference to law and jurisprudence.

5. Communicates directly with CRA/ARQ officers to limit audit expansion.

Learning insight: The CRA expands audits when it sees confusion. CPA clarity closes them faster.

Benefits of Professional Representation

• Prevents audit expansion into unrelated years or accounts.

• Minimizes reassessment exposure and penalties.

• Strengthens documentation quality and internal recordkeeping.

• Reinforces taxpayer credibility and compliance reputation.

• Provides legal safeguards for sensitive or confidential data.

Learning insight: A limited-scope audit handled by a CPA becomes an opportunity to strengthen compliance—not a risk to fear.

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Learning insight: CRA’s limited-scope audits are selective—they target where the risk is highest. Mackisen CPA ensures that every targeted number has a story, evidence, and legal support.

Real Client Success

• A professional firm cleared its travel-expense audit after Mackisen CPA provided complete mileage logs and board resolutions.

• A construction company avoided a five-year expansion when our audit team proved valid subcontractor documentation.

• A retail client recovered $60,000 in delayed refunds by submitting a compliant limited-scope review package.

Why Mackisen CPA Montreal

Mackisen CPA Montreal combines audit-law expertise with hands-on financial management to close audits efficiently and decisively. Our bilingual team of CPAs and tax advisors ensures CRA and Revenue Québec receive complete, consistent, and legally accurate submissions.

Learning insight: CRA looks for patterns; Mackisen CPA shows proof. Turning suspicion into certainty is the hallmark of true compliance.

Learning conclusion: A limited-scope audit is your chance to prove reliability. Mackisen CPA Montreal ensures every document you submit becomes a mark of precision, not suspicion.