The CRA Audit Process Explained (Step-by-Step)

Getting a letter from the CRA about an audit can be stressful — but understanding the process removes most of the anxiety. Here's what typically happens, step by step.

1. Notification

The CRA sends a written notice identifying which tax year(s) and which items are under review — this could be as narrow as one deduction or as broad as a full-scope audit.

2. Document Request

You'll be asked to provide supporting documents: receipts, invoices, bank statements, and any records relevant to the items being reviewed. Organized digital records make this stage far faster.

3. Review & Follow-Up Questions

An auditor reviews your documents and may request clarification or additional records. Responding promptly and completely helps keep the audit on track.

4. Proposed Adjustment

If the auditor finds discrepancies, they'll issue a proposed adjustment letter explaining the changes and giving you a chance to respond before it's finalized.

5. Final Assessment

Once resolved, you'll receive a Notice of Reassessment reflecting any changes to your tax owing or refund.

Working with an experienced tax professional throughout an audit ensures your rights are protected and your response is complete and well-documented.