Auditing has turned out to be one of the most in-demand services across the globe. This is predominantly because of the increased reliance stakeholders now place on the assurance that is provided by these auditors, pertaining to financial statements within the company.
Given the numerous types of audits that are conducted over the normal course of business, it can be seen that all these types target different levels of a surety that customers are looking out for.
When it comes to taxes, it can be seen that tax auditors are high in demand, predominantly because of the fact that taxation tends to be an increasingly complex that is often intimidating for companies. The technicalities that are involved with taxation are perplexing and are often prone to error because of the possibility of miscalculating in this regard.
Therefore, tax auditors are hired by companies, organizations, and institutions in order to get validation regarding the tax returns that have been filed, in addition to the compliance of the law, and any other exemptions that should have been incorporated in this regard.
Credentials Required to Become Tax Auditors
Given the fact that the field of tax audit is a fairly technical field, it makes sense to have credentials and licenses to back up the field itself.
In this regard, it is quite important to ensure that there is clarity regarding the career path individuals are supposed to take so that they are able to optimize their career trajectory and obtain the right credentials that are required to be a certified tax accountant in this regard.
Firstly, in order to be classified as a Tax Auditor, it is necessary to have a bachelor’s degree in accounting or a related field. This is to enable the tax auditors to get a basic understanding regarding the financial statements, as well as the state of affairs of the accounting policies (and overall compliance) within the organization.
Therefore, in this regard, it is rudimentary to ensure that the auditors are equipped with a general understanding of basic accounting principles, that can help them dissect the financial information at hand, based on which they can duly comment on the efficacy of the financial statements that are prepared for the company.
In addition to a basic Bachelor’s degree, there also needs to be a qualification that is specific to the tax subject. This means that there is a need to obtain a professional qualification in addition to the basic degree. In most cases, this professional qualification tends to be a CPA.
This licensure exam is conducted by the Accountancy Board, and it prepares individuals regarding numerous components that prove to be useful for careers relating to accounting and audit.
As far as Tax Auditors are concerned, this professional qualification adds tantamount credibility and volume to the existing state of affairs, primarily because of the fact that it helps users to have an in-depth idea and understanding relating to tax-related affairs, which are highly complex and technical in nature.
Another credential that is required of tax auditors is that of professional experience. As a matter of fact, it is highly important for tax auditors to have a considerable chunk of experience under their belt so that they are able to extrapolate in circumstances that are not explicitly covered in the professional qualification.
Since a very considerable chunk of tax audit is assurance, it is imperative that the tax auditor has experience which can be used in order to gauge tax-related issues in terms of proper materiality.
As a matter of fact, it can be seen that these are some of the most important parameters that are required for tax auditors to apply the required due diligence in the existing state of affairs.
Therefore, there is no doubt to the fact that tax auditors have a high level of responsibility on their shoulders pertaining to the areas that they need to cover in order to provide a reasonable level of assurance to their clients. It requires technical knowledge that needs to be applied to real-life scenarios in order to ensure that they can give reasonable evidence based on findings of the tax audit.
Hence, in this regard, it is important to ensure that tax auditors are able to understand the given process and the dynamic that is required to comply properly and fully with the stated tax law. The profile and credentials tend to increase over the course of time, and experience tends to be the key factor in this regard.