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Before you ask what audit services cost, ask if an audit is needed at all. Under the Canada Business Corporations Act, a company that isn’t a distributing corporation can skip the auditor if every shareholder agrees to it in a resolution. We can’t give you a verified fee for an audit, because none is published, so this page shows how to work out the need and how to judge a quote.
Does your company need an audit?
For a federal company, section 163 of the Act is the test. It opens with one short sentence.
The shareholders of a corporation that is not a distributing corporation may resolve not to appoint an auditor.
Canada Business Corporations Act, section 163 (Dispensing with auditor), laws-lois.justice.gc.ca
The catch is in the next two subsections. The resolution counts only if all shareholders consent, including any who can’t vote, and it lapses at the next annual meeting, so you renew the decision each year.
A distributing corporation, meaning one whose securities are offered to the public, doesn’t get that easy route. Provincially incorporated companies follow their own statutes, and we didn’t verify those one by one. If you’re not federal, read your province’s act or ask the registry.
So the legal answer for many small private companies is no. The practical answer can be different, because someone else may ask for one.
Who asks for audited statements?
Usually a lender, an investor, a grant body or a parent organization, through a contract or funding rule. They set the requirement, not the CRA. We saw nothing on the CRA pages we read that makes an audit a condition of filing a T2.
So the first step costs nothing. Ask the requester, in writing, which level of statements they accept. Some accept less than a full audit, and that one answer can move the bill a long way.
Audit, review or compilation?
These are three levels of assurance from a public accountant. The table shows how they differ. We took the descriptions from accountant summaries of the professional standards, not from the standards themselves, so confirm the wording with a licensed practitioner.
| Engagement | What the accountant does | Assurance |
|---|---|---|
| Compilation | Assembles your figures into statements | None |
| Review | Asks questions and runs analytical checks | Limited |
| Audit | Tests records and evidence in depth | Reasonable |
More testing means more hours, and hours drive price. That’s the honest link between assurance level and cost. It’s also why getting the requester to accept a lower level is worth a phone call.
What makes audit services cost more?
The size and mess of the books. Many transactions, several bank accounts, inventory, foreign currency, subsidiaries and weak records all add hours. So does turning up late with unreconciled accounts.
You can shorten the job yourself. Reconcile the bank accounts, keep supplier invoices together, and prepare schedules for loans, fixed assets and payroll before the auditor arrives. Clean paper is the cheapest discount going.
Compare firms on the same scope. Ask for the timeline, who does the fieldwork, what you must prepare, and whether a second visit is billed. Check that the person signing is a licensed public accountant in your province, using the provincial body’s register. We haven’t reviewed any firm’s fees or quality, and we don’t name any.
What should you do before you hire anyone?
Three steps, in this order. First, find out who’s asking and what they accept, in writing. Second, check your own corporate statute and your shareholder agreement, since a clause there can require an audit even when the law doesn’t. Third, only then ask firms for quotes, all on the same scope.
Take Nadia, who co-owns a small trucking company in Saskatoon with her brother. A bank offers a bigger credit line but wants audited statements. Before she pays anyone, she asks whether reviewed statements would do. If they would, she’s skipped the heaviest engagement. If they wouldn’t, she at least knows the fee is the price of the credit line, and she can weigh the two against each other.
What should you calculate before you pay for one?
Put the audit next to your income. A profitable company can absorb a fee that a thin-margin one can’t, and the profit margin calculator shows where you sit. Your tax bill is a separate cost, and the corporate tax calculator estimates it. For a sense of proportion, the percentage calculator gives any fee as a share of revenue.
If the audit is tied to a loan, weigh the fee against the borrowing it makes possible. A few thousand bucks to get a much bigger credit line can be a fair trade, and a few thousand to satisfy a requirement nobody enforces isn’t.
One trap. Signing away the audit needs every shareholder, and a single holdout ends it, so if you have partners, settle this early and in writing before the year-end rush, because an auditor who has to be appointed late is an auditor who costs more.
What this page is based on
The audit exemption for non-distributing corporations comes from section 163 of the Canada Business Corporations Act and the Corporations Canada guidance on it, read in September 2026. No audit fee could be confirmed from an official source, so none is given. We took the three assurance levels from accountant summaries, so check them with your own accountant.
Frequently asked questions
Does every Canadian company need an audit?
No. A federal corporation that is not distributing can resolve not to appoint an auditor if all shareholders consent. Provincial companies follow their own laws.
How long does the audit exemption last?
Under the CBCA, the resolution is valid only until the next annual meeting of shareholders, so it is renewed each year.
Does the CRA require audited statements for the T2?
We found nothing on the CRA pages we read that makes an audit a condition of filing.
What is the difference between an audit and a review?
An audit gives reasonable assurance after in-depth testing. A review gives limited assurance after questions and analytical checks.
Is there an official price for an audit?
No. We couldn't confirm any fee level from an official source, so compare written quotes on the same scope.
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