Mock Audits
Mock audits asses a company’s overall tax compliance identify credits/ refunds, correct areas of exposure, as well as prepare business’ for a potential audit conducted by the Texas State Comptroller. A mock audit can identify issues before they become costly.
What to Expect
A Texas Tax Group consultant who is an expert with the sales/use tax rules, regulations and policies related to your business will perform a complete audit of your records. This includes:
- Gross Sales Reconciliation: Compares the gross sales from the books to the gross sales reported to the state
- Sales/Use Tax Reconciliation: Compares sales tax itemized on the books to the sales tax reported to the state
- Resale/Exemption Certificates Review: Ensures that all certificates are valid and facially complete
- Taxability Research: Includes tax policy letters, statutes, tax rules, Administrative Hearing decisions and other legally binding documents
- Asset and Expense Purchase Review: Verifies that tax was paid on the appropriate purchase transactions at the appropriate amount; tests for internal controls
- Sales Review: Determines if tax was collected and remitted at the appropriate rate where necessary; tests for internal controls
Records examined during a mock audit include:
- Bank Statements
- Financial Statements
- Material Purchase Invoices
- Purchase Invoices (assets & expenses)
- Sales Journals
- Sales Summaries
- Sales Invoices
- Asset listings
- Purchase Journals
- Federal Income Tax Returns & work papers
- Sales & Use tax returns & work papers
- Chart of accounts
- Customer lists
- Contracts
Mock Audits
Mock audits asses a company’s overall tax compliance identify credits/ refunds, correct areas of exposure, as well as prepare business’ for a potential audit conducted by the Texas State Comptroller. A mock audit can identify issues before they become costly.
What to Expect
A Texas Tax Group consultant who is an expert with the sales/use tax rules, regulations and policies related to your business will perform a complete audit of your records. This includes:
- Gross Sales Reconciliation: Compares the gross sales from the books to the gross sales reported to the state
- Sales/Use Tax Reconciliation: Compares sales tax itemized on the books to the sales tax reported to the state
- Resale/Exemption Certificates Review: Ensures that all certificates are valid and facially complete
- Taxability Research: Includes tax policy letters, statutes, tax rules, Administrative Hearing decisions and other legally binding documents
- Asset and Expense Purchase Review: Verifies that tax was paid on the appropriate purchase transactions at the appropriate amount; tests for internal controls
- Sales Review: Determines if tax was collected and remitted at the appropriate rate where necessary; tests for internal controls
Records examined during a mock audit include:
