Internal Audits Fix Financial Accounting Problems –

Introduction –

CHAPTERS 1 TO 5 have taken the tax risk management process from a proactive one through a tax team creating a Tax Risk Management strategy and then ensuring that the tax manager gets outside input and more facts.

Chapter 6 deals with Tax Risk Management Step 6.

Financial accounting supplies the numbers on which tax compliance is based. Simply relying on these numbers, as is usually the case with most tax managers, is not enough by a long shot. Internal audit procedures must be expanded to self-audit the higher tax risk areas in a business, so as to self-expose any mistakes and noncompliance before the IRS does.

This plays back into proactive tax risk management and the avoidance of unexpected and additional tax charges that may be crippling, if driven by the IRS.

In accordance with Circular 230 Disclosure