Income Tax Audit Manual
Compliance Programs Branch (CPB)
Information
This chapter was last updated July 2026.
Chapter 6.0 Organization of the Audit Division in the tax services office
Table of Contents
6.1.0 Introduction
This chapter is an overview of the roles and responsibilities of the audit staff in a Tax Service Office (TSO). Generally, a typical audit section is made of an assistant director - Audit (ADA) with Audit Managers, Team Leaders and auditors. Specific policies, procedures, and technical information are provided elsewhere in the Income Tax Audit Manual (ITAM).
The structure of the Audit Divisions varies depending on the size of the TSO and the geographic location. The organization and management structure of the Audit Division depend on the program administered and specific regional or TSO structures.
The key positions in a particular Audit Division in a TSO are as follow:
- assistant director – Audit
- audit manager
- administrative support employees
- team leader or case manager depending on the audit program
- auditor, real estate appraiser, valuator, depending on the audit program
The individual work descriptions provide the specific responsibilities of the positions in the Audit Division. The employee should be given a copy of their work description and be familiar with their duties and responsibilities.
6.2.0 Assistant director - Audit
6.2.1 Responsibilities of the assistant director - Audit
The ADA reports to the director of a TSO and is a member of the TSO senior management team.
Every year, each directorates of the Compliance Programs Branch (CPB) in Headquarters (HQ) establishes the compliance program priorities outlined in their Program Business Plans. The CRA also establish a Corporate Business Plan. These plans are available on Canada.ca.
6.3.1 Overview
The audit manager reports to the ADA and manages the activities of one or more programs in the Audit Division. The manager's role and responsibilities vary depending on the structure of the TSO and the responsibilities assigned by the ADA.
6.4.1 Overview
The role and responsibilities of the team leader may vary from one TSO to another, depending on the organization of the Audit Division, team size, and specific audit area.
The team leader works under the general direction of the audit manager or the ADA. Their work priorities are designed to meet the objectives of the Audit Division. The team leader is generally responsible for allocating the workload to employees and monitoring progress. The team leader communicates the team's progress and any significant issues to management as they arise. Management provides direction and advice when necessary to help improve the team's performance.
6.4.2 Key activities of the team leader
The team leader stays informed on policies, procedures, and tools, and ensures that the team members have the resources and guidance needed to perform their work. They are responsible for the daily supervision of their employees. They are also responsible to ensure the audit work if performed according to the standard.
6.4.3 On-site visits by the team leader
From time-to-time, a team leader might accompany his or her auditors in the field. The team leader should schedule on-site visits to the taxpayer in cooperation with the auditor to ensure that the time and place are suitable for all.
6.4.4 Team leader's review of audit files
The team leader reviews the audit file to ensure that the quality and scope of the audit work is complete and that supporting documents are available for any adjustments. The team leader must also review the file to ensure that CRA policies and procedures were followed.
6.5.1 Responsibilities of the Computer Audit Specialist
The Computer Audit Specialist (CAS) provides assistance to auditors in cases where taxpayers use computerized accounting, electronic point of sale or other electronic commerce business systems. The CAS advises and assists auditors to analyze and resolve complex issues relating to the many acts administered by the CRA when e-commerce and electronic accounting systems are used.
6.6.1 Responsibilities of the auditor
This section is an overview of the auditor's role in the Audit Division. The information helps to increase the auditor's understanding of their role in the organization.
Auditors are assigned to a team to work under the supervision of the team leader.
The auditor conducts quality audits to determine the degree of the taxpayer's compliance under the acts administered by the CRA and to make the necessary adjustments when non-compliance is noted.
The auditor:
- ensures that the legislation administered by the CRA is applied fairly and transparently
- performs audits of taxpayers under the Income Tax Act and the Underused Housing Tax Act, independently or as a member of a team, according to the mandate of the Audit Division and CRA policies, procedures, and values
- monitors their workload and completes audit files without undue delay
- provides information to the taxpayer during the audit and informs the taxpayer of their rights and obligations
- explains to the taxpayer how they can provide their books and records electronically to the CRA
- identifies areas where training would be helpful and communicates this need to the team leader
- communicates with the team leader any significant issues that occur during the audit
- represents the CRA in a professional and courteous manner
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6.6.2 Auditor training and development
As a member of the audit team, the auditor acquires and maintains the knowledge and skills necessary to effectively accomplish assigned duties. The auditor must determine the areas where skills and knowledge could be improved through discussion with the team leader. The CRA offers several developmental programs and encourages auditors to request and participate in training, when available.
The ITAM contains the policies, procedures, and technical information approved by CPB. Auditors must be familiar with the ITAM and use it as a tool to help complete their tasks efficiently and effectively.
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