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Taxpayer Audit Program

Decent Essays

Examination techniques
A taxpayer audit program must embrace a range of methods and techniques for determining and verifying a taxpayer’s income if it is to be an effective component of a balanced compliance management strategy. Detecting and deterring non-compliance requires biber (2010) more than a mere examination of a taxpayer’s books and records and necessitates an analysis of the taxpayer’s financial affairs to correctly assess tax liabilities.

Direct methods, often referred to as specific issue or specific item methods; rely upon verification of income or expenses by direct reference to the books and records used to prepare the tax declaration. Adjustments to declarations or assessments are supported by specific evidence in relation …show more content…

Moreover, the required capabilities of audit managers and directors are typically identified based on the notion of coaching, communication, and leadership skills.
The required capabilities for audit managers and directors often focused on leadership and management skills, technical expertise, advanced audit skills, achievement orientation, ability to develop and coach others, high level communication skills, and ability to make strategic decisions (Ibid).
Competency assessment: It is important for tax administrations to assess and evaluate the competencies of their staff. The direct manager commonly performs competency assessments during recruitment and promotional processes on an annual or semiannual basis for those staff maintaining current positions (Ibid)).
Assessments performed as part of recruitment processes are often performed by external specialists, human resource departments and/or panels of internal subject matter experts. Other events triggering capability assessments include prior to performing a new type of work, prior to starting a new role, and ongoing informal assessments and learning and development activities …show more content…

Using and sharing this information across the organization, tax administrations may better allocate work and identify specialist resources or skills Improving competency and addressing capability gaps: Responsibility and a accountability for improving auditors, audit managers and audit directors commonly lies with the staff member in question and their direct manager and/or local management team. Competency improvement should be integrated (not be seen as extra task) into normal business activities. Together with tax auditing or training departments, human resource departments (where applicable) often have joint responsibility and be significant contributors to the improvement process

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