Tax audit coordination

The question and deliverable

We coordinate the applicability assessment, information requests and supporting records, then track unresolved items through the audit process. The auditor’s independent conclusions remain separate from preparation support.

Agree a request register with the appointed auditor and the business team. Each item should identify the period, requested schedule, person responsible, evidence location and outstanding question. A schedule marked as prepared still needs to be delivered and considered; the register keeps those stages separate so an unanswered query does not disappear when a file is uploaded.

Evidence to prepare

• Books and financial statements
• turnover and receipt details
• expense schedules
• statutory payment evidence
• prior reports
• audit request list.

Use a dated financial baseline and retain the version supplied for audit. For each supporting schedule, record its ledger source, reconciliation to the books and any later adjustment. Management should confirm factual explanations, while unresolved differences remain visible with an owner. If the accounts change during the engagement, identify which schedules and previous responses need updating.

A fact that can change the analysis

A reported disallowance needs a working paper linking the conclusion to the underlying transaction. An unsupported spreadsheet total is not a sufficient handover.

For example, a statutory-payment schedule may contain a ledger posting date and a different date on the payment receipt. Supply the underlying receipt and reconciliation rather than silently choosing one date for every purpose. The working paper should distinguish the business facts from the proposed tax treatment and identify the question for the auditor to resolve.

Engagement boundaries

Audit appointment, eligibility, signing and fees are expressly established. Coordination alone does not provide an audit report.

The written proposal confirms the taxpayer, period, deliverables and fees. Identify any payment, response or appeal date at the start.

The handover records schedules delivered, factual responses confirmed by management, open evidence requests and matters awaiting the auditor’s conclusion. Confirm separately who will handle any required portal actions and retain the resulting acknowledgements when available. An internal “complete” label on the preparation checklist is not evidence that a report has been signed or submitted.