Over the course of time, there has been an increasing emphasis on ensuring that companies are able to pay their tax liabilities or obligation on time.
It is important to ensure that companies pay their taxes on time so that they can avoid any late payment surcharges and other possible lawsuits.
Given the complexity involved when it comes to taxes, it is rudimentary to ensure that companies are able to take this seriously, and calculate their taxable amounts with proper certainty.
As a matter of fact, it can be seen that this is something that needs to be considered in order to get a proper idea regarding the tax’s liability against the government so that dues can be settled in time.
A tax audit can be considered as an easy way out that can help companies and organizations to ensure that all the relevant taxation policies and other statutory requirements are dealt with.
A tax auditor, therefore, is a professional who evaluates financial records in order to determine whether they comply with the given applicable tax’s laws or regulation
Who are tax auditors?
As mentioned earlier, tax auditors can be defined as personnel that help organizations to gain reasonable assurance that all the tax laws are adhered to by the organization.
There are a number of jobs and duties that are supposed to be fulfilled by tax auditors. The key roles that are supposed to be fulfilled by tax auditors are given below.
Firstly, it can be seen that tax auditors conduct internal audits in order to ensure that there is proper compliance with tax regulations.
This is perhaps the most prominent headline for tax auditors because of the reason that it helps them get a holistic insight regarding the internal state of affairs of the organizations, which can help them ascertain the standing within the organization.
Secondly, tax auditors are evaluated and further analyze accounting systems that can prove to be beneficial for the company.
Subsequently, they can also use tax control units in order to reduce their taxes.
This does not involve coming up with unethical practices but involves companies adopting strategies that can help efficiently reduce their taxes by allowing claims, and exemptions.
Tax auditors are also required to provide training to staff on tax regulations and procedures, which can help them create awareness within an organization that can create a possible environment within an organization that adheres to the given rules and regulations.
In the same manner, tax auditors are also supposed to maintain all the required tax documents, and further assist the company in preparing tax returns, and other preparation of audits.
Preparation of tax reports also helps the company realize the amount that they pay in tax so that relevant decisions can then be taken in this regard.
There is a number of type of tax auditors. There are internal auditors, external auditors, as well as government auditors.
All of these tax auditors are considered to be highly important in terms of the jobs and tasks that they carry out.
In this regard, it can be seen that these tax auditors are supposed to keep their tasks and objectives in an effective manner. These auditors are supposed to identify fraud, tax errors, and the mismanagement of funds.
External auditors, however, are third parties. They are mainly responsible for helping the clients file tax forms, and further, educate employees on tax advantages, and other exemptions they can possibly claim.
On the other hand, government auditors are also employed by the Internal Revenue Services. They also conduct random audits for companies, in cases where there are doubts of tax evasion or fraud.
Tax auditor from the government’s tax department:
The government’s tax department is also employed the tax auditor or tax inspector which is differently called by different jurisdictions.
The key role of these tax auditors is checking if the companies or entities that register or operate in their jurisdiction are in compliance with the local tax law and regulation.
This auditor might audit the companies or entities in different forms or types of a tax audit.
Those types of tax audits include Mail Audit, Office audit, Field Audit, Desk Audit, Limited Audit, as well as comprehensive audit.
We have written the detail of different types of tax auditors that are conducted by the local tax authority here, type of tax audit. You might check it by clicking the link.
Therefore, it can be seen that tax auditors are mainly responsible in order to ensure that taxation policy is taken into proper consideration so that there is no mismanagement relating to taxation.
Furthermore, it can also be noted that tax auditors are supposed to take care of taxation within the company, and ensure that all the relevant procedural stipulations are duly taken care of.
In order to become a tax auditor, there are numerous regulations that need to be accounted for in order to ensure that there is proper credibility in the tax process.
Lastly, it should also be considered that tax audit is considered as a process that helps companies comply with the relevant laws and legislations so that they can possibly extrapolate the best returns, and ensure that they are not penalized for improper payment of taxes.
Hence, tax auditors are supposed to take responsibility for the tax returns, and ensure that there is proper adherence to the law.