Taxation - audit process, Auditing

Taxation - Audit Process

Companies suffer corporation tax. The Companies Act use that corporation tax payable on the profits of any specific year should be matched against those profits in the loss and profit account and well known as a liability in the balance sheet at the finishing of the time to that the profits relate. It means for example, whether a company has a calendar trading year so the profits for the twelve months ended on date 31 December 2003 should be shown in the loss and profit account together along with the corporation tax payable on those profits in year 2003. The tax is payable is computed requiring income tax rules such are different from accounting rules. The auditor's processes include him in:

i. Obtaining the tax computation from his clients and ensuring such it is arithmetically accurate. The items disclosed as disallowable are supported through evidence and the items claimed as acceptable for example tear and wear allowances have been correctly computed in accordance along with the Income Tax Act.

ii. Review of correspondence along with the Income Tax Department, paying specific attention to queries raise and how that they have been resolved, determining outstanding matters and their current status.

iv. Obtaining a schedule summarising the tax liabilities such reflects the balance to be charged to the loss and profit account and the amount to be indicated as recent liability in the balance sheet.

v. Disclosure of the tax position should be in accordance along with legislation and KAS 10 which both needs that the tax charged are disclosed individually in the loss and profit account and the tax payable are shown in the balance sheet within current liabilities and a note to the accounts should amplify the basis of giving for taxation.

Posted Date: 1/28/2013 12:51:32 AM | Location : United States







Related Discussions:- Taxation - audit process, Assignment Help, Ask Question on Taxation - audit process, Get Answer, Expert's Help, Taxation - audit process Discussions

Write discussion on Taxation - audit process
Your posts are moderated
Related Questions

1. Demonstrate knowledge of the current tax, auditing and accounting issues that concern governmental and not-for-profit entities 2. Explain the difference between various funds (

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

how to operate distribute amount and section rate also provision party bill

example of it security policies in Hardware

You have been assigned to carry out a stock take in a company. Your Audit Supervisor has given you with an audit programme. As part of a briefing session to your juniors, you a

Examples of Specialists Examples of specialists or experts whose work may be relied upon include: For valuations such as land and buildings, machinery and plant,

The first work you do in IDEA IS SECTION 2.5. The accounts receivable folder that you are instructed to select on page 25 is a folder that you are to create previously on page 23.