Effective audit committees are critical to financial reporting quality and to the conduct of business. This article will help you manage an audit by meeting its fiduciary and oversight responsibilities. Competition in managing an audit better is fierce, so one needs to do whatever it takes to become the best at it.
As the very first step, board members overseeing the audit process successfully would set the stage and identify who is more responsible in engaging an audit firm for its services. Here are ten ways to oversee an audit successfully:
Choose an audit liaison person for this department. In most of the cases the most worthy person for this job is the department manager.
- Delaying the audit
Postponing the audit, mostly works to your advantage. Request for more time whenever you think you need it to get the right records in order for any reason.
- Developing Contracts
Experience is the most important thing when it comes to being a good finance manager and overseeing an audit.
- Read up
Do some research on the legal tax issues by using local publications ad tax guides. If you are still unable to understand the tax law take help from a tax pro before the audit.
- Take advantage of Time
To complete an audit within three years of time period the tax return is filed, if unless the IRS finds any tax fraud or under reporting of income.
- Appeal your results
When you finally get the examination report, contact the auditor if you do not understand it. Meet with them to reach a compromise. If you are not satisfied with the result, you can appeal within the IRS or approach a tax court.
- Taking advantage of your rights being a Finance Manager
Browse the IRS publications that explain the Taxpayers’ Bill of Rights that is prior to your audit. If the audit is not going too well, you can demand a recess to take help from a tax pro.
- Prepare your records on time
Make sure you are always done with making records beforehand, however, if you are missing out any documents or receipts, you will be allowed to reconstruct the records all over.
- What you will need to do?
To oversee an audit, convince the IRS that you reported all of the incomes and was entitled to any deductions, credits and exemptions that are questioned.
- Taking immediate action in case of emergencies!
Take corrective action immediately and resolve the problems before they are put into writing. Stay informed of the issues throughout your audit. Request for some time to review the findings and then re-check any calculations and source data.
A business finance manager’s responsibility sure is hard to understand and extends to further understanding of internal and external auditors. Take help by learning to successfully oversee an audit with the help of Leicester MSc Finance courses and become a good finance manager, alternatively you could look into other finance based professions and explore Actuarial Science Colleges. This course is available through the department of Mathematics from the University of Leicester.