Auditing tax should not be as difficult as paying it. However, when auditing the tax line items, it is crucial that the auditor understand the inputs and adjustments that make up the balance or expense – whether it be current income tax or deferred tax.
Of even greater importance is distinguishing what the responsibility of the auditor is when it comes to current and deferred tax line items? How do we test it without taking on management responsibility?
This course aims to prepare your audit team to navigate the audit of the taxation line item.
This session will cover the following:
• Understanding the Tax Assertions and audit procedures to perform per assertion for:
o The income tax expense
o Current tax payable or receivable
o Deferred tax it
• Specific items that an auditor needs to look out for, where adjustments need to be made between accounting and tax (permanent and temporary differences)
• Specific consideration when auditing wear and tear schedules
• The tax reconciliation
• Disclosures on the financial statements
• Common deficiencies and review findings
