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Tax Audits
Tax audit refers to the examination and verification of returns and other relevant tax documents submitted by a legal entity or an individual to the state’s tax agency. The audit is usually conducted by a certified public accountant.
1,102 Questions
What is the difference in how accounting and bookkeeping are viewed?
Thus, in contrast to bookkeeping, which often had been considered a trade, the responsibilities of accounting had expanded by the early twentieth century to such an extent that it now sought professional status.
How would you describe a social audit?
Businesses that are concerned about social responsibility will conduct social audits. This is a systematic evaluation of the organization's progress toward implementing socially responsible programs.
How long do you keep small business acounting records in case of an audit?
All financial records for companies should be kept for at least 7 years.
Outside the U.S., you would be referring to Fellow Chartered Accountant, which is the American equivalent to the CPA or Certified Public Accountant.
With respect to income taxes and the U.S. Tax Code, it is likely you are referring to FICA or Federal Insurance Contribution Act tax. The tax is imposed by the IRS (Internal Revenue Service) on wages and is paid by both the employee and employer. The tax is used to fund Social Security and Medicare.
Is vat a direct tax or indirect tax?
VAT- Value Added Tax is an indirect tax. It is also easier for the consumer to pay the amount in installments rather than paying a huge amount to the government for the betterment of economy.
You can hire a VAT Tax agent in UAE from Flyingcolour Tax Services to get VAT advise for your business.
As in Period of Price rising, current market price of the inventory will be higher than the previous market price on which inventory was purchased by the business. If using FIFO method the lower value of inventry will be rocorded then the value of inventory consumed will not meet the current market position. As a result all the Expenses shown in the financial statements will be lower, profit will be higher which may cause increase in income tax due and the ending inventry will show a higher value.
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Was there an external audit done on Amazoncom?
Yes, the last audit was done on February 11, 2008 by Ernest & Young, LLP
Audit attestation refers to the process by which an independent auditor evaluates and verifies the accuracy and reliability of financial statements or other information prepared by an organization. The auditor provides an opinion on whether the information is presented fairly in accordance with applicable accounting standards. This assurance helps stakeholders, such as investors and regulators, make informed decisions based on the credibility of the reported data. Attestation can also extend to non-financial information, such as compliance with regulations or internal controls.
1.Estimation of total land area ccovered by green plants in certain inhabitant or business area. First estimate the land area of the targeted area where green audit is going to conduct. Then make list of trees ,plants and the area covered by a tree thus the total area. Estimate the percentage of land area under green out of total land area. Compare with national percentage of granary and calculate the deficit or surplus in the locality. Now make plan to improve the land area under green if deficit.
2.Estimate the wastage(paper,plastic,glass,water,rcc ,etc ) ,estimate use of power sources ,estimate whether it is overuse or economic .What are the sources of energy used in the campus ,find out the probability of the use of green sources.
Ultimate aim of Green audit is to estimate the environmental damage caused by human actions ,modern technology and find out methods to reduce the damages and improve the situation
Why absolute assurance is not given in audit?
Because it is not the responsibility of the auditor. The auditor work must be within economic limits.
Do you pay tax on distributions from a limited partnership?
Go to the SSA.gov website and use the search box for Publication 3402 (PDF) Tax Issues For Limited Liability Companies
A limited liability company (LLC) is an entity:
Formed under state law by filing articles of organization as an LLC.
Where none of the members of an LLC are personally liable for its debts.
Must be classified for Federal income tax purposes as if it were a sole proprietorship (referred to as an entity disregarded as separate from its owner), a partnership, or a corporation. However, if the LLC has employees, for employment tax purposes the LLC will be treated as a corporation.
If the LLC has:
Only one owner, (see Publication 555, on community property states), it will automatically be treated as if it were a sole proprietorship (a disregarded entity), unless an election is made for it to be treated as a corporation.
Has two or more owners, it will automatically be treated as a partnership unless an election is made for it to be treated as a corporation.
If the LLC does not make a classification election, a default classification of disregarded entity (single-member LLC) or partnership (multi-member LLC) will apply. The election referred to is made using the Form 8832 (PDF), Entity Classification Election. If a taxpayer does not file Form 8832 (PDF), a default classification will apply.
For additional information use the search box for the below referenced materials
- Publication 334, Tax Guide for Small Business
- Tax Topic 103, Small Business Tax Education Program
- Publication 542, Corporations
- Publication 541, Partnerships
The question asks about good old fashioned LIMITED PARTNERSHIPS (not limited liability partnerships or corps - which were developed much more recently and are a different thing). A limited Partnership (LP) is a partnership agreement where there are at least one general partner (GP) who has unlimited liability and joint and several liability for the LP debts, and limited partners, whose liability is restricted to their investment.
LP are pass through entities for tax - that is they do not pay tax but the partners do on receipt of the income. There are some accounting clinks, where income is either delayed in pass through or speeded up, but that will be seen on the form 1065/K-1 that you receive showing the types of income - or tax benefit - you must claim that year. (Note that an investment in an LP may be passive, investment or active income too).
What is an attestation engagement audit?
are definde as those in which a practitioner (accountant) is engaged to issue or does issue an examination, a review , a compilation, or an agreed upon procedures report on subject matter, that is the responsibility of another party (usually management).
An independent accountant who performs financial audits is a?
An Independent accountant who performs financial audits are called "External Auditors".
What is differences between internal and external statutory audit?
An Internal audit is performed by employees of your own company, usually by employees who are subject matter experts. Internal audit results are usually taken under consideration by management and improvements are made by the company in order to avoid an external audit finding which may result in the risk of citation or fine.
An external statutory audit would be performed by and auditor who is employed by the government (local, state, or federal). The external auditors findings are legal and binding and may lead to citations or fines or both.
If there is no paper trail ask questions of persons performing the procedure
List of direct and indirect taxes?
In India... the list of direct and indirect taxes.. is as following..
Direct Tax:
Income tax
corporation tax
property tax
inheritence (estate) tax &
gift tax
Indirect tax:
customs duty,
central excise duty,
service tax,
sales tax,
value added tax (VAT),
securities transaction tax
