Question

In performing due diligence procedures on a corporate tax return, which of the following would not prove useful to the practitioner?

a) incorporation documents
b) canada revenue agency (cra) correspondence
c) share registers
d) industry analysis

Answer 1

Industry analysis may not be directly useful for due diligence on a corporate tax return as it does not provide specific financial or tax obligation information.

Step-by-step explanation:

In performing due diligence procedures on a corporate tax return, incorporation documents (a), Canada Revenue Agency (CRA) correspondence (b), and share registers (c) would all prove useful to the practitioner. However, industry analysis (d) may not be directly useful in the context of due diligence for a tax return, as it does not provide information about the specific financials or tax obligations of the corporation in question. The useful documents provide concrete data and information on the company's legal and tax framework, including historical communication with tax authorities which can be crucial in determining compliance with tax laws.