Chapter 1: Introduction

All completed audit reports and workpapers are reviewed for completeness, accuracy, and compliance with Tax Department audit requirements.

1. Local review. All audits are required to be reviewed, graded, and if necessary, corrected by local supervisors.
   
   
2. Field Tax Operations. Each Tax Region sends one audit per month for review by the Audit Program Manager.
   
   
3. Regional office review by Field Tax Operations.  Field Tax Operations periodically reviews the Tax program in each Tax Region.  During that regional review, ten audits per Tax Region are selected for review from Field Auditors who completed an audit during the previous 12 months.
   
   
4. Yearly review of the state audit program by the Tax Performance System Reviewer (TPS). The TPS reviewer randomly chooses 60 completed audits for compliance with audit requirements.
   
   
5. State program reviewed by DOL every 3-4 years.

Per Federal law, the Texas Workforce Commission will retain all audit work papers and all related documents for the current year plus three years.

When audits go fully to electronic only paper audits completed prior to electronic implementation date will be maintained in local files in order to meet the retention criteria. The new tax audit program retains and has the ability to recreate any audit stored in the database. All supporting documents are imaged via EInput to the image system and stored under the label "Audit Documents" so they can be recovered and/or printed as required.