Tax 412: Tax Audit and Investigations I

Learning Outcomes

At the end of the course, students should be able to:

  1. explain reason for tax audit, the nature of tax audit and the objective of tax audit;
  2. state the differences between audit and investigation;
  3. appraise the appointment of tax auditors, and elucidate on the duties, rights and obligations of tax auditors;
  4. describe the preparation of audit reports and investigation reports; and
  5. evaluate decision making after tax audit, conflict resolution and settlement of tax controversies.
Course Contents

Definition and nature of tax audit. Objectives of tax audit and Rules. Differences between an audit and an investigation. Reasons for tax audit and tax investigation. Appointment of tax auditors. Duties, rights and obligations of tax auditors. Professional responsibilities and ethical requirements. Planning Tax Audit and Investigation: Sources of Tax payer’s financial and business information. General considerations, nature of business, industry, business cycles, tax compliance history. Audit staffing and logistics. Preparation of work Programmes.

Controlling and Recording an Audit. Review of Accounting System. Allocation and supervision of work. Management of working papers. Documentation of work done. Evidence of proper review, conclusions, action steps. Management of close-out meeting. Preparation of audit reports and investigation reports. Decision-making after-tax audits. Conflict resolution and settlement of tax controversies.