What are nine of the typical procedures that might be applied to the audit of the tax provision by an auditor and/or tax specialist?
All Answers
total answers (1)
total answers (1)
Accounting
- Compare the size and trend in the tax provision and related balance sheet accounts over time.
- Perform walkthroughs and test the design and operating effectiveness of internal controls over the income tax provision (required for an integrated audit).
- Document the testing performed to evaluate the design and operating effectiveness of internal controls over the income tax process (primarily integrated audits).
- Test the mathematical accuracy of the computations supporting the tax provision and related balance sheet accounts
- Identify and test significant permanent and temporary differences in the tax provision calculation.
- Review and evaluate management's position on significant uncertain tax positions for appropriate disclosure and accounting under ASC 740.
- Consider the realizability of net deferred tax assets and adequacy of related valuation allowances.
- Test the reconciliation of income taxes payable, deferred income tax assets/liabilities (including any related valuation allowances), and tax liabilities to supporting documentation.
- Ensure proper documentation in the audit working papers to allow for reperformance of the audit procedures applied to the tax accounts.
need an explanation for this answer? contact us directly to get an explanation for this answer