A choice is based on several measures, explained below:
Identification of Financial actions for audit priority with management accounts:
The minds of audit offices in collaboration with the mind of a department should have a good understanding of their financial activities that are always monitored by the examination and group inspectors.
After building a preliminary analytical evaluation, they need to also utilize management reports to be able to take into account the financial sectors and activities that require greater focus.
So as to make this choice they need to utilize many sources of advice, other taxation office businesses’ knowledge of companies and many debatable tasks concerning hiding obligations.
Finally, they ought to concentrate on the actions which demonstrate deviations in the average of those businesses where they function or repeated instances of non-declaration of the actions and taxation duties thereof.
Identification of high-risk taxpayers and demonstration of a monthly program comprises one of an essential action in the investigation to evaluate concealing and avoidance from taxpayers.
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But, identification of high-risk areas from the audit program must do with overall risk tendencies and audit abilities, to be able to orient work in these regions where danger potentials are more probable and greater.
Inside this identification procedure, the aim of an audit wouldn’t be oriented towards most of the dangers; however, rather, it might concentrate on these dangers and taxpayers that may have a decisive effect on the achievement of their objectives.