Auditing is a process of checking available records, whether system or physical, to ensure that all departments in an organization are following required guidelines that are set to govern their operations. This could be done by the members in an organization or an independent party that is not subject to biasness.
This fairness involves ensuring that no one is either overtaxed or undertaxed. Proper procedures that are economically effective and efficient are used in the auditing process and also assistance to all matters that are tax-related, in most cases businesses use defense in case of proceedings like the http://www.mvhtexasliquorlaw.com/comptroller_audit_defense.html. The main agenda of the Auditor is to ensure that all regulations that pertain taxation are adhered to and all the businesses have complied with tax regulations. In this process, the audit section ensures that the taxpayer is not inconvenienced at all.
Among the responsibilities charged with comptroller audit section is helping businesses to keep the correct records in effort to help them in evading future taxation complications that lead to increased liabilities. This is also a part of ensuring that the taxpayer is not inconvenienced by the auditing process. The auditing process involves the client at every stage effectively without interfering with normal business operations.
This is where the client is informed of the audit (in a formal meeting) by the auditor who collects relevant information about the business and its operations which helps in analysis of operations using specified tools to determine the scope and aims of the procedure. The analysis also helps in test designs that will be used in the actual audit. This is initiated by an announcement letter from the auditor. The specified meeting helps the client to point out a specific area of system of concern and the auditor meets the members that will be involved in the process. The audit program put together at the end of this stage helps in figuring out the necessary steps to be carried out to ensure that aims of the audit are achieved.
This is where the auditor determines whether the defined operations are carried out properly as specified by the client in the previous stage using transaction testing. At the end of this stage, the auditor lists the discoveries of the procedure which help in the attainment of the next stage. Communication with the client is key in helping to resolve any findings during the procedure. The audit summary clearly outlines the discoveries and recommendations of the audit process. An important tool in this stage, Working Papers, ties financial records to what the auditor’s opinion is.
This is created by the auditor in a simplified manner in which the client can understand the findings and recommendations of the Auditor. For efficiency of the process, there is creation of an initial draft, from thorough analysis of Working Papers, in communication with the client, who gives comments, prior to the compilation of the final report. This report is given to the client who will respond to it indicating any assistance provided by the report.
This is done after some predefined period of time to verify the effect of findings and recommendations. Any findings that are not clear from the client and verified in the follow-up report, which is a set of actions employed by the client to resolved the initial findings. Completely unsolved discoveries are also properly documented in this report clearly specifying the current condition and any solving attempts that were made.
There are various reasons why audits (and in this particular case, Comptroller Audit) are carried out. These include:
This is experienced by both the ‘tax collector’ and the organization. They do help organizations to keep their records of operations in order hence simplifying the entire taxation process by making it more economical and efficient.
Auditing ensures that organizations do comply with regulations that are set to control how businesses carry out their operations. This protects both the staff of the company and those that are affected directly with the operations of the organization.
For the government, it is assured that all the people that pay taxes actually do so correctly hence the government can easy make budgets. On the other hand, the organization is assure that the business is operating in accordance to regulations.
This audit helps to maintain the reputation of business as they are viewed as law abiding by their clients and hence they do have more confidence in the business and its operations.
This auditing process helps the stakeholders of the business and the potential future investors have confidence in the operations of the business and hence are confident with being part of the business.