Companies receive a critical and informed view of their activities, with the main objectives of identifying additional tax payments and reducing the tax burden through more efficient planning. Not for nothing, the work goes through a complete review of the organization’s tax practices. However, for the conditions for improvement to arise, the tax audit must follow a logical process and divided into stages, at the end of which a technical opinion on the company’s situation will be issued. Consult with a professional if you are an Independent contractor taxes, otherwise there is no way to guarantee a standardization of results. Below, you will find the main steps of the audit.
After closing the contract and defining the terms of the audit, the specialists contact the customer. The objective is to discuss the particularities of taxation, because the incidence of taxes varies greatly according to the size, segment, location, products and services of a company.
Critical research and evaluation
The steps following the opening meeting are aimed at collecting and processing information. That is, the auditors will carry out technical / scientific research work to diagnose the company’s situation and review the work done so far. Among the measures, it is possible to highlight the following:
- Information collection: clear indication of the documents and books to which the audit needs access;
- Software analysis: use of technology to perform combinatorial analyzes with the information collected,
- Execution of the work: division of the auditors into work groups
It is worth mentioning that the work carried out is completely different from what occurs in the daily routine of companies.
After the research and evaluation work, a preliminary report is delivered to the company with the appropriate notes. The focus here is to open the content for debate and validate the auditors’ technical opinions in the following steps, in addition to detailing the origin and legal basis of possible tax credits. It is not by chance that this step gives rise to two measures:
- Internal audit: review of the work by a second team of auditors,
- Technical analysis: the company can audit the preliminary reports with its team of accountants and present disagreements based on law or rule
- Closing meeting: if there are disagreements, the points will be debated in a new meeting for approval of the final work, in which those involved can expose their points, and the external auditors demonstrate the basis of their technical opinions.
With the work completed, a meeting takes place to deliver the physical report and explain the results of the audit. Thus, a milestone is created in the company’s life cycle in which, with the information in hand, managers can implement improvements in terms of calculation bases, ancillary declarations, tax regimes, credits, etc.