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How to Maintain Compliance Documentation for Sales Tax Audits | TaxConnex

TaxConnex

Maintaining compliance documentation is crucial for businesses to ensure smooth and successful audits. Proper documentation allows auditors to interpret and verify your financial transactions accurately. Unfortunately, many businesses find themselves unprepared when faced with an audit, lacking the necessary documentation.

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Tips to Ensure You Don't Mishandle a Sales Tax Audit

TaxConnex

Good news and press for your business could also put you on the radar for auditors. Many companies’ documentation is poorly organized and hard for an auditor to interpret. Documentation typically required by an auditor can include invoices, exemption certificates , summary reports, tax returns, and more.

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The new breed of audit

TaxConnex

In years past, auditors could show up at your door asking to look at your records. Many audits are conducted remotely, and an auditor never visits your office. Auditors can tap different data sources to select audits more accurately based on the level of risk, and to use new tools to automate the repetitive tasks of an audit.

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Best Practices for Managing a Sales Tax Audit

TaxConnex

One of your customers undergoing their own audit might produce one of your invoices, resulting in the auditor possibly contacting you for an exemption certificate or other documents. Auditors know that competitors tend to have similar business models and that some industries are more susceptible than others to tax deficiencies.

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Top Tips to Prepare for an eCommerce Audit

TaxConnex

Unfortunately, there’s no playbook for determining the company profile that will attract a state’s auditors, but there are measures you can take to assess your exposure: Understand physical and economic nexus. ?Physical Also be careful who the auditor has access to and what areas of your business they have access to. First moves.

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PCAOB Provides Three Resources For Auditors On the New Quality Control Rules

CPA Practice

Webinar : This webinar, led by expert staff in the PCAOB’s Office of the Chief Auditor, provides an overview of QC 1000 requirements and is designed to help auditors prepare for the standard’s implementation. 1, A Firm’s System of Quality Management , adopted by the AICPA.

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How Auditors Are Currently Using Generative AI

CPA Practice

audit regulator recently spoke to auditors who work at the U.S. the Big Four, RSM US, BDO USA, Grant Thornton), as well as several auditors from non-affiliated firms in the U.S. Evaluating the completeness of audit documentation against relevant documentation requirements. arms of the largest global networks firms (i.e.,

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