Auditing Small and Medium Size Enterprises 

in Training Institute, Ministry of Finance

3^rd to the 7^th of March, 2008

For Tax Purposes

Auditing is an art based on knowledge and experience. It is the auditor’s duty to tell the public that the financial statements of an enterprise reflect the real picture. He should be objective and impartial in his judgement. The auditor will not come to a judgement without sound research using the right tools and techniques. In general the auditor has a particular task in safeguarding that the annual accounts of the company are not inflated. For tax purposes there is a second dimension to his work as the auditor will do research in the opposite  direction: both the capital and the profits of the company should not be too low. For this he will use special tools and techniques.

Auditing is not just making calculations or comparing data. It’s about relationship, induction and deduction of the underlying data. There it comes to an art too as the auditor has to rely on his creativity to find out about these relationships.  

Purpose

The objectives of this seminar are to discuss strategies to counter domestic tax abuses and discuss the roles of the audit process within these overall strategies.  The seminar will include discussions on  risk identification, resource planning, communications with the taxpayer, preparation for  an audit, the audit work programme, reporting and final assessment. Dialogues on taxpayers' rights and obligations, on appropriate legislation and basic audit theory will also be included. A significant part of the seminar will be devoted to practical cases allowing participants to familiarise themselves with the common practical audit tools and techniques.  The workshop will also deal with the auditing of electronic records.  The main purpose for this event is to provide the participants with a sound understanding of tax audits and a comprehensive toolkit for auditing. At the same time, the participants will be encouraged to develop a creative approach to deal with most domestic audit cases as well as with problems of the shadow economy.

Focus

The workshop will cover:

• Strategies to counter tax abuses, in particular those  linked to the cash economy
• Basic audit principles
• Some case studies as examples for the detection of omitted sales revenues

Whereas most counter measures are aimed at small and medium size enterprises they might as well be used when auditing larger ones, as recent big real life cases showed that fraud may occur everywhere and anytime. This workshop will also cover specific audit issues that are of particular concern when dealing with domestic enterprises.  In particular it will look at:

• Taxpayer’s rights and obligations in relation to the audit function
• Risk identification and assessment
• Skills and attitude of the tax auditor
• Basic audit principles
• The audit process
• Tools, techniques and good practices
• Falsifications and fraud detection

Structure

Each topic will be dealt with through introductory lectures and key issues will then be developed through informal dialogue and case studies.  The lectures will outline basic issues such as the legislative, administrative and audit approaches that a tax administration could adopt to deal with tax evasion.  These basic issues will be developed in the discussion of case studies and experiences.

Case Studies and Country Experience  

Part of the workshop will be devoted to discussions of case studies and country-specific experience.  These sessions will allow participants and experts to share views and experiences on domestic auditing.  In addition to attending the lectures, participants will make short presentations on relevant cases and legislative or administrative issues.  

Apart from the plenary sessions, participants will split into small groups to discuss key issues and practical problems. Groups will report in plenary sessions to give participants the opportunity to share their views. As part of the process of learning from each other participants should be prepared to describe their experiences and the organisation and nature of the auditing process in their jurisdictions.   

Experts

Experts will be experienced auditors who are familiar with their country's approach and the general issues that arise through carrying out an audit in these circumstances. 

Participants

Target Audience: starting and middle level tax auditors as well as policy makers who are interested in audit practices.


The 2008 International Taxation Seminar on OECD Guidelines
 

Auditing Small and Medium Size Enterprises 

3^rd to the 7^th of March, 2008

Curriculum (Tentative)

Instructors:

Mr. Harold Gosler RA  : OECD consultant, The Netherlands, event leader

Mrs. Heidelinde Haindl : Ministry of Finance Austria, expert 

Each class will be held in 50-minute units from 9:10 a.m. to 4:20 p.m. The lunch break is scheduled

for one hour and 30 minutes.