Agreed Audit Procedures for Accounting and Tax Reporting
Audit with large sampling of accounting data, accounting methodology and recalculation of tax reporting indicators allows identifying and minimizing the risks of non-compliance with the requirements of tax legislation and assessing the company’s readiness for tax audit.
Tax audit projects are implemented using the International Standard on Related Services 4400, “Engagements to Perform Agreed-Upon Procedures Regarding Financial Information”, which are approved by the International Auditing and Assurance Standards Board (IAASB).
The experience of MGI PSP Audit in provision of this service has been successfully implemented in the developed and patented guidelines for the implementation of audit procedures for accounting and tax reporting and preparation of the resulting document. This allows to form a unified approach to the work methodology of our experts and ensure its proper control.
How can we help
Audit of the client’s accounting to identify the risks of additional accrual of liabilities toward the budget and the penalties
Audit of the client’s assessment of taxes and duties (or individual taxes as agreed with the client), their reflection in accounting and tax reporting
We apply a comprehensive approach to implementation of such procedures, which includes the study of business, accounting arrangement, existing tax burden, qualifications of the client’s staff responsible for preparing tax reporting;
We plan our procedures with a high percentage of the source document sampling to audit their correctness and availability;
We make a list and provide our assessment of key indicators of tax reporting;
We use both internal and external sources of information to identify any risky transactions;
We model the supervisory authority’s position on the risky transactions and submit additional inquiries to the client to ensure that it is ready to respond to such challenges;
We analyze the tax benefits and exemptions applied by the client with high professional skepticism;