Mock Audits

Mock audits are 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 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, 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 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
  • 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 addressed through a refund claim.

Why Texas Tax Group

  • Our Policy Experts are well versed with Comptroller rules, regulations and policy, have written over 5,000 private letter tax rulings while employed with the Comptroller
  • Texas Tax Group’s team of 18 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
  • Our 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 employed by the State
  • TTG has offices located in Houston, Dallas, San Antonio and Austin

Get Free Advice from Former Auditors

Contact us at 855-TX-AUDIT (855-892-8348) to schedule a free 20-minute consultation today!