Do the auditors use sampling?
Audit sampling generally benefits both the taxpayer and the Department of Revenue by reducing the time necessary to complete audit fieldwork and reducing the taxpayer’s time and effort in retrieving documents for audit purposes. Some factors that will affect the sampling methodology are: volume of invoices, industry type, size of company, availability of and access to records and cyclical periods for sales or purchases. One of the keys to selecting a representative sample is communication between the auditor and taxpayer.
