A Canadian company had received notice of an audit from the CRA and provided information in response to questions and information requests but no follow up had been received for several years.

The target company was going to be sold in due course and the business had a provision in its accounts on the advice of its auditors in case an issue arose from the audit. Such provision had been in place for a number of years. This would clearly affect value on the sale.

We issued a policy to the target company notwithstanding the open audit which the company had not been able to close. The Finance Director of the target company was spending a lot of time internally on the point and the policy enabled her to close out the provision in the financial statements and not spend further management time on the issue.