INTERNAL AUDIT BEFORE TAX AUDIT: STAGES OF CARRYING OUT, RECORDING OF RESULTS, CONSEQUENCES

n order for the tax audit to go as smoothly as possible, do not forget about the preparation for it. Usually you can independently sort through stacks of papers and analyze the financial work of the enterprise. But the best quick option would be to conduct an internal audit.

An internal audit of an enterprise is an opportunity to conduct a full audit of the enterprise's operation before a tax audit in order to timely identify and eliminate certain problems.

In the modern world, there are many specialized companies that can conduct an internal audit of an enterprise before a tax audit quickly and with the highest quality.

Stages

• Organizational. This stage consists precisely in the organization of the internal audit. At this stage, it is advisable to decide on the purpose of the audit, that is, it can be both an audit of financial statements, and an audit of compliance with the requirements of legislation and internal regulatory documents, or other areas that are important for the company.
• Documentary introduction. At this stage, the auditor should familiarize himself with the documentation of the company in the field in which the audit is being carried out. That is, if it is compliance with the financial statements of the company, then at this stage the auditor gets acquainted with the financial documents of the enterprise for the audit period.
• Conducting on-site audits. At this stage, the verification is carried out directly in the company or its structural divisions to evaluate the actual data with the data recorded in the documents.
• Generalization and generation of reports. After the preliminary stages, the auditor summarizes the results of the audit and generates a report. The report reflects the real picture of cases, indicating inaccuracies that may arise during the audit.

Fixing the results of internal audit

The results of the internal audit are recorded in the audit report. It describes in detail all the stages of the internal audit and identified or not detected inaccuracies between the documentary and actual data of the enterprise.

Consequences of internal audit

According to the results of the internal audit before the tax audit, the enterprise will have a real opportunity to eliminate inaccuracies that may arise from the results of the internal audit. This is a real opportunity to thoroughly prepare for the upcoming tax audit.

But if you do not know where to start and whether it is worth conducting an internal audit before a tax audit, do not neglect financial specialists. After all, professional legal and accounting assistance is the key to confidence in any audit.