VAT may be one of the easiest line items in financial statements to audit. It may also be one of the areas where many auditors do not recognise errors due to the simplicity thereof. In order to audit VAT, the auditor needs to understand the underlying principles thereof, as well as the impact of the client’s operations on their VAT.
This course aims to assist auditors in successfully obtaining assurance over VAT line item.
SAIT MEMBERS: Access your member discount with us by consulting the member instructions BEFORE making a booking at http://probetatraining.obsysfiles.co.za/PBT/onlinepages/SAIT2022.pdf
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NO MANUAL DISCOUNTS OR CREDITS WILL BE ISSUED.
This session will cover the following:
• General approach in auditing the VAT line item, including the risks and audit procedures associated with it
• General overview of VAT principles necessary to audit VAT (this session is not a VAT technical course, and will not cover all VAT principles in full detail)
• Areas of significance when auditing VAT:
o Compliance with SARS deadlines
o Reconciling the VAT returns with the financial statements:
Client reconciliations and the audit working paper
Input and output tax reconciliations
The reasonability of reconciling items
o Know your client: understanding the impact of your client’s operations and industry on the VAT treatment of their transactions
o Specific transactions to look out for:
Fixed assets
Leases
Imports
Input tax denied
Supplementary income streams
