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 (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

    Get Free Advice from Former Auditors

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