Mock Audit

A mock audit is used to assess a company’s possible overall tax exposure, identify credits, and/or potential refund opportunities, improve compliance processes, and prepare your business for a potential audit conducted by the Texas State Comptroller. In general, a mock audit can identify positive and/or negative Texas Tax issues for a business.

What to Expect

A Texas Tax Group (TTG) 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 audit includes:

• Gross Sales Reconciliation: Compares the gross sales from the books, accounting records and other sources 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 correct amount; tests for internal controls
• Sales Review: Determines if the 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
• Federal Income Tax Returns & work papers
• Sales & Use tax returns & work papers
• Sales Journals
• Sales Summaries

• Purchase Invoices (assets & expenses)
• Purchase Journals
• Sales Invoices
• Asset listings
• Chart of accounts
• Customer lists
• Contracts

It is important to note that a mock audit may uncover tax liabilities or overpaid or over accrued taxes. Tax liabilities can be addressed through a separate Voluntary Disclosure Agreement. Overpayments could be handled through a refund claim.

Why Texas Tax Group

• TTG’s Policy Experts are well acquainted with Comptroller rules, regulations, and policy, and have written over 5,000 private letter tax rulings while employed with the Comptroller’s office
• TTG’s team of 20+ former Texas Comptroller State Tax Auditors, Supervisors, and Tax Policy Experts have over 400 combined years of work experience with the Texas Comptroller’s office
• TTG consultants have performed over 5,000 tax audits while employed as auditors by the Texas Comptroller’s Office and are familiar with the audit procedures used by the State
• TTG has offices located in Houston, Dallas, San Antonio, and Austin