Audit Triggers

Audit Triggers is a practical, in-depth course designed to help accounting professionals understand how the Canada Revenue Agency selects files for audit and what specific behaviours, reporting patterns, and structural decisions increase audit risk. As the CRA continues to rely on data analytics, third-party matching, industry benchmarking, and automated risk scoring, audit selection is increasingly driven by algorithms rather than random choice. This course explains how that system works and translates complex audit selection mechanisms into clear, actionable guidance for CPAs and tax professionals. Participants will explore common audit triggers for individual taxpayers, including disproportionate deductions, recurring rental or self-employment losses, lifestyle inconsistencies, foreign asset reporting gaps, frequent amendments, and unsupported home office or vehicle claims. The course also examines corporate red flags such as gross margin outliers, inconsistencies between GST/HST and T2 filings, payroll discrepancies, shareholder loan patterns, related-party transactions, aggressive reorganizations, and compensation planning issues. Special attention is given to GST/HST audit risks, including large or frequent input tax credit claims, recurring refund positions, place-of-supply errors, zero-rating misclassifications, and section 156 election compliance. The course also outlines how the CRA integrates third-party data from T-slips, land registries, financial institutions, crypto exchanges, FINTRAC, and international reporting systems such as CRS and FATCA to detect underreported income and structural irregularities. Throughout the program, learners gain practical strategies to reduce audit exposure through consistent reporting, clear documentation, cross-return reconciliation, and proactive compliance planning. The emphasis is not on eliminating audit risk entirely, but on understanding how to anticipate and manage it effectively. This course is delivered online and is fully self paced, combining video instruction with downloadable reference materials, case examples, and knowledge checks to reinforce learning. It contributes toward both the Canadian Tax Mastery Certificate and the Sector-Specific and Emerging Tax Issues Certificate, making it a valuable component of a comprehensive professional development plan for Canadian tax practitioners.