1.1. Background Of The Study. . . A Tax Is A Compulsory

Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at

Auditors play an important role in the banking industry, they should help promote confidence and independence in the financial industry. The auditors work for and act as a go between the shareholders and the corporation. The auditors responsibilities is to make sure the company is in compliance, to detect fraud and report illegal acts. The recent financial crisis revealed many weakness

The auditor is responsible for obtaining sufficient appropriate audit evidence about whether the financial statements are free of material misstatements. In addition to understanding whether the amounts reported in the financial statements are mathematically

Considering the tax planning, SOX identify the potential risks of the similar firm conducting both tax services and auditing for a business by changing the relationship between the audit Committee of company and external auditors, thus providing a new obligation for the tax services to be pre-approved by the audit committee while the auditors are not limited from the tax services they can offer (Piotroski & Srinivasan, 2007). The Security Exchange Commission specifies that the audit committee in charge of retention and appointment of auditors must examine first, transactions primarily suggested by the accountant of the firm, secondly transactions which the only purpose is tax evasion, and lastly the treatment of tax that may not be assisted by the Internal Revenue Code of the United States and associated regulations (Piotroski & Srinivasan, 2007). Tax evasion constitutes the illegal nonpayment of tax and cannot be condoned (Raabe, et al., 2015). Those three

It is already two hundred years since the United States independence. For the long time development, it has formed a relatively perfect tax system and tax administration system. The United States has more than 80 federal and state taxes, the implementation of the income tax as the main complex tax system. US citizens and companies are generally not personally declare taxes, but the tax agency accounting firm commissioned by them. Through the continuous improvement of the legislation on the tax agency industry, the US government gradually form a transparent, fair and standardized tax agency market. Especially the United States Treasury Department revised circular No. 230 requires tax preparer to be competent and to adhere to ethical standards in order to protect taxpayers and the IRS. Besides these, it carried out its detailed specification on the behavior of the tax agency personnel, including vocational qualifications, responsibilities and limitations and penalties for irregularities. Meanwhile, AICPA Statements on Standards for Tax Services address problems inherent in the tax practitioner’s dual role in serving the client and the public, and Intended to supplement AICPA Code of Professional Conduct and Circular 230.

It highlights the importance of auditors applying sensitive and ethical judgments in all their engagements. Members have the responsibility to collaborate with each other to improve the art of accounting, as well as to maintain the public’s confidence. The auditor’s responsibilities are essential to an effective audit process because through planning, auditors should to communicate with each other, be very organized and discuss what and how to do things in order to serve the public. One of the most important parts in auditing is planning, for that reason responsibility is a must.

An IRS audit is a review or examination of an organization’s or individual's accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is substantially correct.

Discuss the adequacy of the current deterrence model of tax compliance based on a combination of penalties and rate of audits. Does it provide the proper balance in light of our “voluntary compliance” system in the United States?

Auditing is the independent examination of financial statements and the underlying books of account so as to form an opinion on whether they are prepared in all material aspects in accordance with the financial reporting framework. Such reporting framework includes International Accounting Standards (IAS), the Companies Act Cap 110 (for Uganda) and any other relevant legislation. This is however carried out by a person termed as auditor.

All over the world, governments undertake huge public expenditure on behalf of their citizens for the provision of basic amenities and other social services. To meet up with these responsibilities, governments thus require substantial amount of funds. Among the various sources from which can generate income, taxes are the most important and most reliable; contributing much more than any other source. A tax therefore, is a compulsory levy imposed by the government on the income, profit or wealth of an individual, family, community, Taxation is the inherent power of the state, exercised through the legislature, to impose financial burdens upon subject within its jurisdiction for the purpose of raising revenues to carry out the legitimate duties of government (Kenned & John, 2014)

All the tax-related matters should be handled with utmost sincerity and carefulness. The government should take strict action to it and stick in the favor of citizens of the country who are honestly paying high taxes. In any way, the public should not feel cheated and disappointed.

The auditor required to providing a reasonable assurance about the financial statements that they are free of error or fraud by planning and performing audit work in conformity with GAAS (AU-C 240). According to AU-C 240, fraudulent financial reporting and misappropriation of assets are the two main category of fraud. The auditor should consider the incentive or pressure upon the employee, evaluating the environment or the opportunities to commit the fraud and looking at the justifications to committing fraud when he assessing a likelihood of fraud (AU-C 240). However, in the case they were incentive and pressure by management to meet the Wall Street expectations, opportunities to acquire companies in the future, and weakness of the internal control.

The auditor’s responsibilities are to audit annual financial statements and internal controls over financial reporting, and reports from the 10-Q quarterly reports. The auditor must also advice on new accounting pronouncements, and consolidating financial statements. (Intel Proxy Statement 2011, 48)

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.