The professional accountant responsible for issuing the Corporation’s Financial Statements for the fiscal period should carefully review the entries that the bookkeeper has posted in the Corporation’s books and records to ensure that all transactions are correctly recorded and allocated. Adjusting and correcting entries should then be made, as required.
It is not possible to proceed to T2 Income tax return preparation without first obtaining proper Financial Statements.
However, somewhat troubling in the description of bank operations indicates that both the corporation and the individual appear to be operating bank accounts illegally (in contraventions of their contracts with the bank).
In addition compliance with ITA S230 (books and records) looks like it likely needs attention.
Three-way discussions together with the corporations CPA and the corporations lawyer would appear to be the recommended course of action, IMHO.