Preparing for an Audit

Preparing for an Audit

Our auditor will contact you to arrange for a mutually agreeable time and place to conduct an audit. This is usually at your place of business, but can take place at a public accountant's office or at our offices.

The audit involves a review of financial records, usually for the two previous calendar years. We want to verify the correct amount of assessable payroll has been reported for assessment purposes. The type of records we need to see include, but aren't limited to:

• T4s, T4-As and associated summaries,
• payroll records,
• record of casual labour,
• record of all contract labour, (This usually involves reviewing the general ledger, cheque disbursement journals/registers, synoptic journals and/or cancelled cheques. Reviewing invoices of subcontractors/contractors is also often necessary).
• year-end financial statements.

In many situations, we like to take a tour of your facilities. The information we gain helps us to assure your firm is assigned the correct industry code.

Learn more about:

• Assessable Payroll
• Payroll Reporting for Personal Coverage
• Use of Contractors
• Reporting Penalties and Interest
• Fair Practices Office
   

Related Fact Sheets and Publications

• Assessment Schedule for Contract Labour FAQ
• Assessable Payroll Fact Sheet
• Fines and Penalties Fact Sheet
• Personal Coverage for Business Owners Fact Sheet

Related Policies and Administrative Guidelines

• Policy 35.05.10, Reporting and Verifying Payroll
  • Administrative Guidelines for Policy 35.05.10
• Policy 35.05.20, Paying and Refunding Premiums
  • Administrative Guidelines for Policy 35.05.20
• Policy 35.10.50, Status of Workers - Independent Contractors and Employers
  • Administrative Guidelines for Policy 35.10.50
• Policy 35.20.10, Classification of Employers into Sub-Groups
  • Administrative Guidelines for Policy 35.20.10
• Policy 35.20.15, Associated Employers
  • Administrative Guidelines for Policy 35.20.15