What is an audit?
An audit is an accounting procedure under which the financial records of a company or individual are closely inspected to make sure that they are accurate. Many American taxpayers fear an Internal Revenue Service audit, while dishonest companies fear independent audits of their business practices which may reveal embezzlement and other misuses of funds. An audit keeps a company honest and also reassures employees and investors as to the financial status of the organization. There are two primary types of audit: internal audits and independent audits. Regardless as to the type of audit, it should be assumed that an audit will be performed without bias. In the case of an internal audit, this can be difficult, because an internal audit is carried out by the accounting staff of the company concerned. Generally, an internal audit can only successfully be carried out by a large accounting department, because auditors cannot audit records to which they contributed. Internal audits are usually
An audit is an investigation to determine whether the information provided to the government on the information/tax return is correct – and as a result the audit can determine whether the proper amount of tax was paid. The burden of proof during the audit is on the taxpayer – you have to prove to the government that all of the information on the return (the amounts of income, the exclusions, exemptions, deductions and credits) is true and correct. Bear in mind that although you have the burden of proof, that does not mean that you are compelled to show every document to the government agent – some documents are simply none of their business. Some audits are conducted by mail, some require you to go to the government agency’s office, and other audits require that the government’s agent go out and meet with you at your home or business. Some audits are relatively routine matters. Many audits result in no change – the required information on the return was accurate and there is no change
An internal audit is an independent appraisal activity established within Duke University to examine and evaluate its activities. Assigned auditors from the Office of Internal Audits conduct the review in conjunction with Duke internal organizations at Duke University, Duke Medicine and Duke Management Company (DUMAC).
The traditional view of an IRS tax audit is a face-to-face contact with an IRS auditor. About one-third of IRS “tax audits” are in the form of letters asking for explanations of various tax items on a tax return or supporting documentation. If you receive a tax audit letter from the IRS, read the letter to see the nature of the tax audit problem. The IRS may want to audit the entire tax return or could audit just a portion of it, for example, meals and entertainment or automobile and travel expenses.
An audit is a comprehensive review of the employer’s health and safety management system. To qualify for a COR, the audit must be carried out by a qualified auditor, using an audit instrument that is approved for Partnerships use, is appropriate to the industry and operations of the employer, and is accepted by a Certifying Partner. The audit will typically cover the basic elements of a health and safety management system and will include interviews, documentation review and observation techniques.
