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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
How could Bush's tax cuts reduce the deficit?
The theory is that an infusion of cash stimulates the economy, creates jobs, broadens the tax base and leads to eventual increased tax revenue, (Some call this process nothing but smoke and mirrors.)
What is the purpose of the Institute of Internal Auditors' internal audit function?
The internal audit function is to ensure that an organization meets its objectives through a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance
What is the difference between exemption and withholding allowance?
An exemption basically is something you use to lower your taxes, or something you do not have to pay taxes on, such as a child or student loan interest. A withholding allowance is how much the employer withholds from your check in taxes after exemptions are calculated.
What is the royalty rate in the apparel business?
For non-professional non-college sports apparel (e.g. regular fashion apparel), the annual royalty rate is typically between about 1.75% and 6% of net sales. For professional or college sports apparel the royalty rate is between about 8% and 15% of net sales. The Licensee also typically has to agree to certain level of investment in advertising and distribution (e.g. 3% of net sales for advertising and agreeing to open a certain number of flagship stores in the geographic area that is the subject of the license).
How much do independent bookkeepers charge?
An independent bookkeeper sets their own rates. Depending on where you live they can be anywhere from $15/hour to $100/hour. I personally charge $50/hour and I live in southern California. I have a certificate in accounting and am a QuickBooks Pro Advisor. I am not a CPA.
OPERATIONAL AUDIT. An operational audit is a systematic review and evaluation of an organizational unit to determine whether it is functioning effectively and efficiently, whether it is accomplishing established objectives and goals, and whether it is using all of its resources appropriately. Resources in this context include funds, personnel, property, equipment, materials, information, space, and whatever else may be used by that unit. Operational audits can include evaluations of the work flow and proprietyof performance measurements. These audits are tailored to fit the nature of the operations being reviewed. "Carefully done, operational auditing is a cost-effective way of getting a higher return from the audit function by making it helpful to operating management.
COMPLIANCE AUDIT. A compliance audit determines whether the organizational unit or function is following particular rules or directives. Such rules or directives can originate internally or externally and can include one or more of the following: organizational policies; performance plans; established procedures; required authorizations; applicable external regulations; relevant contractualprovisions; and federal, state, and local laws
FINANCIAL AUDIT. A financial audit is an examination of the financial planning and reporting process, the conduct of financial operations, the reliability and integrity of financial records, and the preparation of financial statements. Such a review includes an appraisal of the system of internal controls related to financial function.
Who performs an operational audit?
internal auditors perform an operational audit as part of their assurance services they render to oganisations.
What is meant by consolidated profit and loss?
When there is a parent and subsidiary companies exists in that situation the combined financial information of parent company as well as subsidiary companies are shown under one statment which are called consolidated financial statements so in consolidated profit and loss account combined information of both parent and subsidiaries shown together rather preparing separate statements.
Tax incidence refers to who actually pays the tax.
Tax incidence can be divided into 1. formal incidence :the party liable to the tax 2. Informal incidence :party who actually pays the tax,
The tax incidence is decided by the elasticity of demand and supply for a good or service.
What is a disadvantage to the single audit approach?
some granting agencies do not receive as much information about their grant programs as when separate grant audits are performed. As a result, some granting agencies require audit work that goes beyond the single audit requirement;
A project audit provides an opportunity to uncover the issues, concerns and challenges encountered in the execution of a project. It affords the project manager, project sponsor and project team an interim view of what has gone well and what needs to be improved with the project to successfully complete it. If done at the close of a project, a project audit can be used to develop success criteria for future projects by providing a forensic review. This review will provide an opportunity to learn what elements of the project were successfully managed and which ones presented some challenges. This will help the organization identify what it needs to do so that mistakes are not repeated on future projects.
How did audits work before the Single Audit Act?
Before the SAA, federal agencies had the authority to require an audit of each federally funded program or activity. Thus, audit overlaps and organizational inefficiencies existed as there was no coordination among the federal agencies.
It is double stereo. Front and rear. In every corner one loudspeaker.
What do you mean by audit the accounts of sole trader?
a person who is competent enough to take up risk and challenges
How many years can the IRS go back?
There is no easy answer to this question. If you are found to committed fraud in your preparation of your taxes, the IRS can go back to the first time you had your first nickel of income. If you are fraudulent there is no limit of time that will protect your action from inspection and from action against you. As long as you were accurate and not trying to cheat on your returns or your taxes due, then it will make no difference in any time limitations for examination of your returns.
Why in order to reduce the money supply the Fed might sell securities in the open market operations?
Because that is how FED removes money from circulation, thus reducing money supply. The opposite would be buying securities in open market operations in order to increase money supply.
Audit is a practice to find out that does financial statements of business are prepared according to standards and policies and whether it presents the true and fair business activities or not.
What does the CPA do in an audit?
In an audit of financial statements, the CPA examines the transactions that underlie an entity's financial statements and reports whether the financial statements are fairly stated in conformity with generally accepted accounting principles.
When internal audit is mandatory?
internal audit is mandatory for all listed companies and for other companies if: 1) The paid up capital and reserves are more than Rs 50 lacks as at the commencement of the financial year , or 2) Avg annual turnover exceeds Rs 5 crore for a period of three consecutive financial yrs immediately preceeding the financial year
An audit engagement is when an auditor is performing an audit on a business. They are looking at all their books to make sure the business is recording their finances correctly.
