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What is an audit Business Articles | August 20, 2015



What is an audit
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By definition, an Audit is an examination of claims. The numbers that are put on the ST-1 or Sales and Use Return are claims.

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Example:


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We claim that we had $100,000 in receipts, of which $50 Cheap Air Max 2020 ,000 were sales taxable, $10,000 was freight, $30,000 was labor Cheap Air Tuned Max 2019 Men's Triple black Online , and the last $10,000 was sold to charitable entities and therefore non-taxable. The Department might examine that claim to make sure that you didn’t have $80,000 in taxable sales to see if you were guilty of evading sales tax on the additional $30,000.


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Another example:


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We operate a service based business and do not file a sales and use tax return. But we purchased a computer printer from Michigan and failed to report a Use Tax. By not filing a Use Tax return, we are claiming that we did not have a tax Cheap Nike Air Max 98 Men's Neon Pink Teal Online , when we actually did have a use taxable situation.


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In the examination, the examiner will need to see source documents that are by definition untainted. The documents must come from their source, such as a copy of a canceled check from a bank or a receipt from a vendor so that they will be considered evidence. If you have a had chance to change them, then they will be considered tainted, and are non-evidential.


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If you are having problems with what is an audit or have issues with your accounting in general Cheap Nike Air Max 97 Men's Black University Red Online , we would love to help. I enjoy hearing from my readers, and can be contacted at
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Additional Accounting Articles and information on my firm can be found at
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