Taxation tends to be one of the most complex and challenging parts of the accounting division within the company. This is primarily because of the reason that its in-depth analysis, and understanding of the transactions that take place over the fiscal year of the company, and the associated taxes with these transactions.
This cannot be done by simply looking at the tax laws of the specific country, because there are numerous clauses involved that should be considered before presenting a clear cut idea regarding the taxes of the given organization.
Despite the fact that companies tend to hire tax lawyers for this purpose, it can be seen that tax auditors also have a significant role to play in this regard. From an organizational perspective, it can be seen that tax auditors are supposed to double-check and verify if the company has paid the correct amount of taxes, and if there is anything questionable within the financial statements because of which the taxable amount is incorrect.
In addition to organizations, tax auditors also cater to other areas, including governments, institutions, and not-for-profit entities. Since tax auditors act as an intermediary between the government (revenue collection service) and the taxpayer, their responsibility is quite considerable and should be taken very seriously.
How to Become a Tax Auditor?
Tax auditors are now high in demand because of the increasing need for corporations to ensure that they are in compliance with the stated tax law. Therefore, it requires tax auditors to have sufficient knowledge regarding the basic accounting laws and treatments, in addition to tax principles that are used in the respective tax regime.
Hence, it can be seen that the primary requirement to obtain certification as a tax auditor requires a basic degree in relevant education. This includes accounting and finance-related degrees, which are necessary in order for auditors to get a basic understanding regarding the financials (and financial statements) of the companies.
It is imperative that a basic level of understanding is going to enable familiarity relating to financial statements so that these auditors can comment on the financial statements with the required knowledge and familiarity.
Followed by basic graduation in a related field, there are certifications and additional degrees in place that prepare individuals to be regarded as properly certified auditors. These certifications include CPA, and Specific Tax Auditor Certifications, which are licensed, and considered as a credible source of validating that the individual has the required skill set that is required to comment on the viability of the tax audit.
Apart from these certifications, practical hands-on experience is also a very crucial factor in determining the performance, and service protocols of the given tax auditor.
For example, experience as a tax lawyer or tax accountant in an organization can further validate that the individual has the required experience to comment on the tax viability within the organization. This is something that is highly useful for auditing tax-related assignments of various different companies because it strengthens credibility checks for the given individuals.
Therefore, it can be seen that in order to become a tax lawyer, individuals need to pass a learning curve that constitutes basic degrees, certification, as well as practical hands-on experience. Depending on the efforts that go into basic tax audit regimes, it can be seen that validity and integrity begin contributing to a blossomed career as a tax accountant.
In this regard, the importance of being associated with a reputed tax consultancy, or any of the Big 4 Firms is also an added incentive, because it gives individuals an opportunity to nourish their careers for the better outcome.
Therefore, there is no doubt to the fact that becoming a tax auditor does require seriousness on part of individuals who aspire to be recognized in the given domain. However, individuals must also realize that it is necessary to understand the level of responsibility that is associated with the tax measure so that better outcomes can be evaluated in the longer run.
As a matter of fact, it is similar to validating that there are no inconsistencies, irregularities, or issues with the tax returns that have been filed by the company, and this audit tends to reflect all their findings. Hence, it is important for tax auditors to design their testing procedures in a proper manner, which can help them provide reasonable assurance regarding their findings.