Audits are a normal part of business. The Canadian tax system is based on self-reporting and part of the Canada Revenue Agency’s mandate is to make sure all taxpayers are reporting truthfully and accurately. As such, the audit process is not to be feared as long as you keep good books and records.
Audits can be as simple as a written request for documentation or involve a visit to your business by a CRA auditor. In either case, you should treat the matter seriously, but there is no reason to panic. Be truthful, polite, and supply the requested documentation, and all should go well. If you don’t understand a request, clarify it with the auditor. Do not answer what you think the CRA wants to hear; you may do more harm than good.