But in many cases, the fear of an audit from tax administration is actually worse than the audit itself
Plus, the average person stands a small chance of being audited
Chances increase when tax fraud and tax evasion come into the picture
What does it mean to be audited?
When the IRS conducts an audit at your home or business location, it’s called a field audit
Revenue agents review all types of returns, especially taxpayers with a high net worth or complicated returns with potential mistakes
You can expect four phases during an office or field audit
1The term audit usually refers to the financial audit or review of financial statements
A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent
Audits are a necessary and important part of the financial world
That's because a company's financial health and well-being can't be upheld without proper accounting
Routine audits ensure that companies are following reporting standards and, more importantly, that they are being truthful and honest about their financial position
For example, the audit firm would have to make sure that each specialist has the necessary training, skills, and integrity, and is aware of and complies with the far-reaching personal independence rules
Here, the more professional the organization of the company to be audited, the more open the auditor’s access to management and the board of directors, and the greater the willingness to do something right and implement the auditor’s recommendations, the higher the quality and benefit of the audit
