Although the chances of taxpayers being audited have declined in recent years, with taxes becoming more complicated every year, there is always the possibility that a tax mistake turns into an IRS tax audit. Avoiding “red flags” like the ones listed below could help.
Finding ways to improve audit quality and eradicate fraud are never ending tasks. Continued vigilance is a necessity. British authorities have been studying the issues from several angles over the past two years. The outcomes from three studies have been analyzed and incorporated into a comprehensive set of proposals that address the roles of corporate directors, shareholders, auditors and regulators alike. This issue of the Audit & Accounting Alert highlights significant aspects of the resulting consultation paper.
ESG Affects CPAs as Well as Their Clients. New reports explore the issues. The last several years appear to have brought more changes in weather, society, and the regulatory atmosphere than I can recall when I began to write the Audit & Accounting Alert nearly ten years ago. There are differing levels of agreement on some of the issues, such as the cause and impact of climate change. Nevertheless, the increased attention during this time frame to the environmental, social and governmental (ESG) aspects of financial reporting should not be a surprise. When first covering the topic in September 2012, the focus was on general concepts and seeking input for developing a framework.
Just 0.45 percent of taxpayers were audited in fiscal year 2019. Still, with taxes becoming more complicated every year, there is an even greater possibility of confusion turning into a tax mistake and an IRS audit. Avoiding "red flags" like the ones listed below could help. Red Flags That Trigger IRS Audits Claiming Business Losses Year After Year When you operate a business and file Schedule C, the IRS assumes you operate that business to make a profit. Claiming losses year after year...
AT-A-GLANCE For the past quarter century, every two years the Association of Certified Fraud Examiners (ACFE) has issued a comprehensive analysis of the impact of financial fraud. However, with the rise of the coronavirus pandemic this past year, the ACFE has supplemented the biennial report with quarterly updates assessing specifically the impact of COVID-19 on fraud within organizations. This issue of the Audit & Accounting Alert summarizes the latest findings. Our Worldwide Update is...
