Audit PDF Print E-mail
Monday, 10 January 2011 11:47

Definitions (2)1. An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.

2. An audit is an IRS examination of an individual or corporation's tax return, to verify its accuracy. There are three types of audits: correspondence audits (the IRS mails a request for additional information), office audits (an interview is conducted at a local IRS office), and field audits (an interview is conducted at a taxpayer's place of business, for a corporate tax return). Since there is always the chance of an audit, experts recommend keeping good records to support all the information in a return. The reason detailed and accurate bookkeeping is so important is that the burden of proof is on the filer, not the Inland Revenue System in your relevant country.

Last Updated on Wednesday, 11 May 2011 08:09