A CRA (Canada Revenue Agency) audit is an examination of an individual or business’s financial records to ensure compliance with Canadian tax laws. The CRA conducts audits to verify the accuracy of tax returns, identify potential tax violations, and ensure that all income has been reported correctly. Audits can be random or triggered by discrepancies in reported information. During an audit, the CRA may request documentation such as receipts, bank statements, and other financial records. The process can range from a straightforward review to a more in-depth investigation, and individuals and businesses have rights during this process, including the right to appeal findings.
