Audit System Manual graphic

[ Audit System Manual- TOC ] [ Ch 1 - Introduction ] [ Ch 2 - Preparing for an Audit ] [ Ch 3 - Conducting the Audit ] [ Ch 4 - Completing the Audit Forms and Schedules ] [ Ch 5 - Audit System Screens ] [ Ch 6 - Miscellaneous ] [ Ch 7 - USDOL - Tax Performance System ] [ Ch 8 - Computer Fundamentals & Hardware ] [ Appendix ]
[ 3.1 - General Information ] [ 3.2 - Understanding the Payroll Flow ] [ 3.3 - Books and Records ] [ 3.4 - Employee vs Independent Contractor Decision ] [ 3.5 - Sample Audit Procedures] [3.6 - Minimum Audit Requirements of the TWC Tax Department & the Tax Performance System (TPS)] [3.7 - Post Audit Conference] [3.8 - Audit Report and Work Papers]

Chapter 3:    Conducting the Audit


comments to: Tax Department

3.1    General Information

Due to the many types of records maintained by employers, an audit program cannot be standardized in every detail. The type of records kept by an employer will determine the manner in which the audit is performed, and therefore, the Auditor must determine what records the employer maintains.

Tact and good judgment can affect the success of the assignment. Auditors must assume that their actions during the course of an audit will be watched closely. They should be extremely careful in making statements or in expressing opinions until they are prepared to substantiate them fully. In other words, examine the records completely, ask questions, and then provide the audit results to the employer. Do not start a discussion about the audit results during the middle of the audit.

A quality audit not only requires the auditing of records but it also includes pre-audit and post audit conferences with the employer.


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Texas Workforce Commission  |  Unemployment Tax

Last Revision: May 05, 2011