Types of Tax Audit Reports
The following types of reports are prepared in the everyday practice of the audit section:
– Confidential reports
– Audit reports
– Inspection Acts
– Verification Acts
– Ascertainment Acts
– Confidential reports are prepared by the auditor who presents them to the Head of LTO in case of tax fraud detection or evasion in very high values or special situations. These reports audit report briefly describe the findings and the arguments to begin an investigation in cooperation with economic crime structures, judicial police and the preliminary needs for additional audit resources. Confidential reports are also presented when the auditor considers it reasonable that certain problems remain confidential until they are discussed with the Head of LTO.
– Audit reports are prepared on the basis of the audit program, describing its implementation and findings during the audit. This type of report should meet the following requirement:
a. It should be accurate, supported with facts, explicit, complete, concise, non-emotional, non-personal, objective and timely.
b. Findings should comply with program requirements and be supported with appropriate justifying documents;
c. Conclusions should comply with the findings and serve to minimize violations and unreal declarations in the future;
d. The audit content should state the auditor’s ascertainments based on the findings;
e. The form, content and structure of the report should match the requirements of this Manual.
– Inspection act is a report prepared by the auditor upon a request from the head of section. These reports describe the situation and progress in the implementation of the fiscal visit to the taxpayer at a certain point in time, findings, problems and barriers, respect of deadlines for finalizing the audit, needs for additional audit resources, etc, and other needs. After having received the inspection act, the head of section, when necessary, assigns additional duties and takes additional measures to continue with a full audit and implement the additional program.