Taxation tends to be one of the most complex and challenging parts of the accounting division within the company. This is primarily because of its in-depth analysis and understanding of the transactions over the company’s fiscal year 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.
Even though 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 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 comply with the stated tax law. Therefore, it requires tax auditors to know the basic accounting laws and treatments and tax principles 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 for auditors to understand a company’s financial statements, policies, procedures, and other related financial transactions.
A basic level of understanding must enable familiarity relating to financial statements so that these auditors can comment on the financial statements with the required knowledge and familiarity.
Following basic graduation in a related field, certifications and additional degrees prepare individuals to be regarded as properly certified auditors. These certifications include CPA, and Specific Tax Auditor Certifications, which are licensed, and considered a credible sou of validating that the individual has the required skill set required, not on the viability of the tax audit.
Apart from these certifications, practical hands-on experience is also a 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 highly useful for auditing tax-related assignments of various companies because it strengthens credibility checks for the given individuals.
Therefore, it can be seen that to become a tax auditor, 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 a better outcome.
Therefore, no doubt, becoming a tax auditor does require seriousness on the 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 associated with the tax measure to evaluate better outcomes better.
As a matter of fact, it is similar to validating that there are no inconsistencies, irregularities, or issues with the tax returns that the company has filed to reflect all its findings. Hence, it is important for tax auditors to design their testing procedures properly, which can help them provide reasonable assurance regarding their findings.