audit charities audit program client service · 2019-02-21 · charities the cra takes an...

AUDIT PROCESSFORCHARITIES

The CRA takes an education-first approach to help registered charities follow the rules. These tools help charities comply:

Education first

websiteoutreach programclient service

reminder lettersaudit program

SELECTION

A charity can be selected for audit for various reasons including the following:

random selectioncomplaints from publicmedia articles orother public sources

information fromT3010 annual returnpast non-compliance

How is a charity selected for audit?

AUDIT

How does the CRA audit a charity?

The CRA reviews the finances andprograms of charities to make surethey follow the rules and operatefor charitable purposes. The typeof audit depends on the charity’ssize and complexity.The CRA works closely with charitiesand accepts additional informationthroughout the process.

Field AuditConducted atthe charity’s placeof businessEXAMINES:

the charity’s filepublicly availableinformationall booksand records

Office Audit Conducted at CRA officesEXAMINES:

the charity’s filepublicly available informationsome books and records

RESULT

No concernsno action

Minor concernseducation letter

Moderate concernscompliance agreement

Serious concernssanctionsregistration revokedregistration annulled

WHAT HAPPENSAFTER AN AUDIT?

If a charity disagrees with the CRA’s findings, it can respond. The CRA reviews the response and determines the appropriate action.

AUDITOUTCOME

MORE THAN 90% OF AUDITEDCHARITIES ARE ABLE TO CONTINUETHEIR CHARITABLE WORK.

RECOURSE

The charity has 90 daysto file an objectionwith theCRA’s Appeals Branch.

If the charity disagrees with theresult of the objection, it can appealto the Federal Court of Appealor the Tax Court of Canada.

What can a charity do if the CRA proposes sanctions or revocation?

Charities Education Program