Tax Audit Process

Compiling and presenting detailed tax audit reports to financial managers. Making recommendations and establishing best practices in tax management. Overseeing the implementation of tax audit recommendations. Keeping informed of tax laws and regulations, as well as auditing practices.

Tax Audit Checklist

·       Check Opening from Last Years Audited BS.

·       Turnover Reconcilliation from GSTR-1.

·       Check that GSTR-1 Matches with GSTR-3B.

·       GSTR-2B Reconcilliation with Books.

·       TDS Reconcilliation as per Form 26AS.

·       Check for TDS carried forward from Last FY and TDS Carried to Next FY.

·       GST Cash Ledger Reconcilliation.

Key Responsibilities

Tax auditors perform the following duties:

• Conduct internal audits to ensure compliance with tax regulations.

• Evaluate and analyze accounting systems and tax control units to reduce taxes.

• Provide training to staff on tax regulations and procedures.

• Maintain all required tax documents.

• Assist companies file tax and prepare for audits.

• Prepare tax audit reports.

• Offer recommendations on proper tax filing and reporting.

Types of Tax Auditors

Tax auditors can either be internal, external or government auditors. Internal auditors are employed to conduct audits and perform other accounting functions within a company. They can help identify fraud, tax errors and mismanagement of funds. External auditors are impartial third-parties. They help their clients file tax forms and educate employees on tax advantages. Government auditors are employed by the Internal Revenue Service (IRS). They conduct random audits for companies, especially those suspected of tax evasion or fraud.

How to Become a Tax Auditor

Those who want to become tax auditors should undertake a bachelor’s degree course in accounting. An accounting degree enables students to learn a variety of topics related to accounting, including tax laws, fraud detection and auditing. Those who graduate with associate degrees can also qualify for some entry-level jobs under the supervision of an experienced and licensed auditor.

In addition to a degree, the federal government requires tax auditors to have a CPA certification. The CPA certification exam is administered by the state boards of accountancy. Applicants need at least a degree to qualify for the test. However, some states allow work experience as a substitute for academic requirements. CPA holders must pursue continuing education in order to maintain their CPA credential.