Travel Agency Trust Account Audit for TICO Compliance in Ontario

By Bader A. Chowdry, CPA, CA, LPA | Insight Accounting CPA

Ontario travel agencies registered with the Travel Industry Council of Ontario (TICO) must maintain trust accounts for customer deposits and comply with financial reporting requirements under the Travel Industry Act, 2002. At Insight Accounting CPA in Mississauga, we provide specialized trust account audit services for travel agencies across Toronto, the Greater Toronto Area (GTA), and all of Ontario.

Call (905) 270-1873 to discuss your travel agency trust audit needs.

TICO Trust Account Requirements

The Travel Industry Act, 2002 and Ontario Regulation 26/05 require registered travel agents and tour operators in Ontario to maintain trust accounts for customer travel funds. These accounts must be properly segregated, reconciled monthly, and subject to audit. TICO monitors compliance to protect consumers who prepay for travel services. Travel agencies in Mississauga, Toronto, and across the GTA must demonstrate that customer funds held in trust are available and properly accounted for.

What the Audit Covers

• Trust account balance verification through independent bank confirmations
• Monthly reconciliation testing between trust account balances and customer booking records
• Proper fund segregation – ensuring trust funds are not commingled with operating funds
• Timely deposit compliance – verifying customer payments are deposited into trust within required timeframes
• Disbursement testing – confirming trust fund disbursements are made only for customer travel services
• Working capital compliance – verifying the agency meets minimum working capital requirements

The Audit Process

Step 1: Understanding Your Operations

We review your travel agency’s TICO registration, product offerings, booking systems, and trust account procedures. For agencies in Mississauga, Toronto, and the GTA, we assess the volume and nature of travel bookings to plan an efficient audit approach.

Step 2: Trust Account Testing

We independently confirm trust account balances and test a sample of customer deposits and disbursements against booking records. This is the core of the TICO trust account audit for travel agencies in Ontario.

Step 3: Financial Statement Audit

We audit the agency’s complete financial statements under Canadian Auditing Standards (CAS), covering revenue recognition, commission income, supplier payables, and working capital calculations required by TICO for agencies in Mississauga, Toronto, and across Ontario.

Step 4: TICO Reporting

We prepare the financial reporting package in the format required by TICO, ensuring your agency in Mississauga, Toronto, the GTA, or Ontario meets all annual filing deadlines.

Applicable Standards

• Canadian Auditing Standards (CAS)
• Travel Industry Act, 2002 and Ontario Regulation 26/05
• TICO compliance guidelines
• CSAE 3531 – for direct compliance engagements

Documents to Prepare

• TICO registration certificate
• General ledger and trial balance
• Trust account bank statements (all 12 months)
• Monthly trust account reconciliations
• Customer booking records and deposit receipts
• Supplier payment records
• Commission statements from suppliers
• Working capital calculation
• Prior year audit report

Why Choose Insight Accounting CPA

• Licensed Public Accountants (LPA) authorized by CPA Ontario
• TICO audit expertise for travel agencies across Ontario
• Trust account specialists
• Mississauga-based serving agencies across Toronto, the GTA, and Ontario
• AI-enhanced processes through our patent-pending Accounting Intelligence framework
• Ex-KPMG experience

Frequently Asked Questions

Do all Ontario travel agencies need a trust account audit?

TICO-registered agencies that hold customer funds in trust are required to maintain proper records and may need audited financial statements. Contact us at (905) 270-1873 to verify your specific requirements.

What happens if trust funds are mismanaged?

TICO can suspend or revoke your registration, and the Ontario Travel Industry Compensation Fund may be impacted. Proper trust account management protects both consumers and your agency in Mississauga, Toronto, and across Ontario.

How much does a TICO trust audit cost?

Fees depend on booking volume and trust account complexity. Contact us at (905) 270-1873 for a quote for your travel agency in Mississauga, Toronto, the GTA, or Ontario.

When is the TICO filing deadline?

Financial statements must typically be filed within 90 days of your fiscal year-end. We recommend travel agencies in Mississauga, Toronto, and the GTA begin the audit process promptly after year-end.

Can you help with TICO compliance beyond the audit?

Yes. We provide ongoing advisory services for trust account management and TICO compliance for travel agencies across Mississauga, Toronto, and Ontario.

Contact Us

Insight Accounting CPA – 4300 Village Centre Ct, Unit 100, Mississauga, Ontario L4Z 1S2.

Call (905) 270-1873 or visit our contact page. Learn more about our trust account audit services, audit and assurance, and our team.

By Bader A. Chowdry, CPA, CA, LPA | Insight Accounting CPA | Mississauga, Ontario