Internal Audits Fix Financial Accounting Problems –

Executive Summary –

MANY BUSINESSES PUT their blind faith in reactive reporting by their auditors or accountants and expect that their tax manager through the route of normal tax compliance will resolve all tax risks. In the difficult regulatory environment that taxpayers operate in, this is not a prudent tax risk management strategy. Businesses need to have their own internal control and check mechanisms. The tax team that has been formed will also assist in performing internal audits associated with tax risk management. They must be privy to all information, subject to legal privilege, in order to identify, analyze, and solve tax risks effectively, such as accounting provisions, for instance. The tax team, with internal audit, must be placed into a position to gain more information and impose controls and checks on a regular basis, and not only when the outside accountants conduct an audit.

In accordance with Circular 230 Disclosure