I have no doubt that managers are getting the creeps when they hear the word ‘audit’. An audit turns over the whole company. It can bring some clarity but inside the company, an audit can cause lots of stress. Managers become bad-tempered and the employees are the victims. So, I wonder if it is possible to avoid legally an audit. In the article that I found, 5 ways are given to avoid an audit, but these five rules give no guarantee.Rule 1: Check your arithmetic
The company won’t get a full audit if they have some mathematical mistakes. But if the books keeping are full of it, the audit company will have doubts about the honesty of it. Audit Computer programs are so sophisticated that its find directly dubious results, like high amounts for charitable contributions.
Rule 2: Arrange your finances so they don't stand out
Some situations can have easily an audit like self-employments, companies who receives revenues in cash, ...
Rule 3: Substantiate, substantiate, substantiate
We can find more fraud at items as auto, travel, meals and entertainment. Auditors control especially these items. Knowing that, try to be clear in this.
Rule 4: Know when to file
If the company has to pay taxes, do this in time. On the one hand, if the company pays to early, it gives an interest-free loan. On the other hand, paying to late increases the chance that the company gets an audit.
Rule 5: Plan your taxes to pre-empt an audit
Make sure you have all evidence to prove high spending.
In my opinion, these 5 rules can help the company to pass an audit, but not to avoid one. For instance, rule 2, you can nothing do about it: you are self-employed or you’re not. These 5 rules can only give you confidence that you have a precise bookkeeping.
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I also believe that these rules can be interesting for the company to pass an audit. In my view I think that companies don't have to be afraid of audits, because these are important for the company. Even though they cause a lot of stress, audits are necessary for companies. After an audit, a company knows what they have to do to improve.
BeantwoordenVerwijderenAudits are really necessary in each company. I also think these 5 rules can help the company to pass an audit. Audits are important because it can be a confirmation of good work in the firm. On the other hand it can be an incentive to do some things better. An audit shouldn't be associated as negative, but it has to be a motivation to improve, I think!
BeantwoordenVerwijderenI agree with Laurens, Lynn and Isabelle. If the results of the audit are negative, you will be stimulated to do better than previously. I think that rule 3 is very important. It's well-known that those items are verified thoroughly, so make that it's clear for the auditor.
BeantwoordenVerwijderenBut if the results of the audit are positive, it doesn't mean that you can't improve your company.
It must be a stimulus to do even better.