Audit information and comparisons
| Types: | Audits are of different types, quality and integrated or differentiated into personal, internal, external, statutory, nonstatutory, social, performance and final. |
| Strategy or Method: | The main steps involved in auditing is information gathering, followed by evaluation and validation of internal control. |
| What is it?: | Audit is the evaluation of a person, system, organization or product done to determine its validity and authenticity. |
| Purpose: | To ensure information reported is accurate according to tax law |
| Selection: | Occurs if computer programs detect irregularities on the form, if there are an unusual number of deductions, or if randomly selected. |
| Process: | Taxpayer meets auditor at home, at place of business or in an IRS office. Involves interviews, review of records, potentially interviews with related third parties. |
| Result: | Auditor explains findings and report in detail. Can be accepted or appealed. |
| Taxpayers selected annually: | Approx. 0.25% |