How can a CPA help you during an interview with the taxation office and the audit?

How can a CPA help you during an interview with the taxation office and the audit?

25 January 2018
 Categories: Finance & Money, Blog

When your business has been involved in dealings that have been found suspicious by the revenue office, they will send in auditors for an assessment. The first meeting with the officials from the office is usually non-formal, and at times referred to as a meet and greet. However, during the session, essential questions about your business, your employees and banking practices and taxation processes will come up. The person who can answer these questions without creating unnecessary tension ahead of the actual audit is a certified public accountant. Your CPA will play the following roles before and during an audit.

Preparing everyone who will be interviewed

Your CPA is the right person to speak to all your employees about an upcoming audit and tell them what they need to do in preparation. The expert needs to assure your employees that the process is usually very harmless and that they should not give any incorrect information to the authorities or try to withhold information because they are scared of the possible consequences. The CPA also needs to inform the employees about the importance of brevity during the interview and how to refrain from offering more information than was requested.

Discussing the audit rules with the authorities

Technically, the CPA is not a legal expert. However, there are a few issues related to an audit they are supposed to know. For instance, if they are your representative during the audit, they will have the power of attorney, which means that the agent cannot speak to anyone in your business without their approval or presence. All questions from the auditor are supposed to be directed to the CPA during the audit and also any requests for additional documents.

Questioning the auditor

There are certain things that your CPA is supposed to find out from the taxation office about the audit process. They should, therefore, ask questions to confirm the authenticity of the agent and their identification number, and whether your business is in any way being investigated by the criminal investigators or fraud department. The CPA also needs to find out the specific reason for the audit, and what your business might have done to trigger it.

Having a competent CPA during a rough experience such as an audit is the best way to make sure that the process is carried out legally and that your best interests are represented throughout the process.  

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