Tax audit

A tax audit is a comprehensive audit of a financial activity of the enterprise for a certain period with the purpose of identifying the facts of wrong maintenance tax records, incomplete or overpayment of taxes and contributions, errors in preparing of tax declarations, and tax risk assessment of the existing order of business dealing.

During the conduct of the tax audit you will be able to realize:

• a primary inspection of the economic activity of your organization;
• the analysis of completeness and correctness of the tax policy of your organization;
• an audit of correctness of the determination of a tax base and rates;
• the audit of timeliness and fullness of the transfer of taxes and insurance payments in the budget and state non-budgetary funds;
• identifying of the areas of possible risks during tax inspections;
• the analysis of legality of the application of tax benefits or other mechanisms provided by the legislation and allowing to reduce the tax burden;
• the analysis of applied methodology of the accounting.

The common procedures of the conduct the tax audit don’t exist. Every auditing organization develops own methodology on the basis of practical experience and blameless knowledge of normative acts.

The tax audit is conducted by the most experienced employees of the auditing company, who can understand the real scheme of Client activity. In General, a tax audit is a special task on the consideration of tax and accounting reports, the result of which is the expression of opinion on reliability of tax accounts and issue remarks and recommendations in writing form (giving report) on their correction in case of exposure of significant deviations leading to appearance of tax risks.

The conduct of the tax audit allows to the Client to get confidence that all necessary taxes and non-budgetary payments of his company have been correctly calculated and paid in time.

However it is necessary to notice that the tax audit is not a panacea from all troubles. For providing of confidence in probability of sanctions of tax authorities are minimized, a full audit is necessary.

The result of the tax audit is drawn up as a report with the detailed description of the conducted audit procedures, identified deficiencies (violations) and recommendations on their correction.