Audit Manual, Ch 3, Sec 3.7 - Post Audit Conference

3.7 Post Audit Conference

A post audit conference is required. During the post audit conference the Auditor must explain to the employer or the employer's designated representative not only the audit results, but also any other changes, which must be made to comply with state reporting requirements. Any adjustments should be explained at this time.

The Auditor should:

Explain to the employer what records have been examined, the conclusions from that examination, and the justification for the conclusions.
Explain any tax reports and/or adjustments that are a result of the audit.
Explain the employer's options if there is any disagreement with the results of the audit. If an appeal is filed, the examiner should be prepared to attend and present the audit findings at a Rule - 13 Hearing.
Secure any remittance for additional taxes. If a credit results from the audit that cannot be used up in one year, advise the employer on how to apply for a refund.
Secure a signed C-1 or C-1AM if a corporation was audited, if a sole proprietor or partnership does not have one on the Transaction Log (TDO) and the account was established after 1992, or a change in the ownership occurred.
Inform the employer of their responsibilities under the law.
Explain the importance of reading and responding to instructions and requests in correspondence dealing with TWC and the TUCA.

If possible, the post-audit conference should be held with an owner, officer, or partner. The conference may be held with an authorized representative (CPA, attorney, bookkeeper, payroll manager) designated by the employer. Where discrepancies or noncompliance are found, they should be discussed with a responsible company official (owner, officer, or partner) or designated representative who has the authority to order changes in the reporting procedure. In-house bookkeepers and in some instances, accountants, follow the employer's instructions on reporting procedures and may not have authority to make changes. A person with the authority to make changes should be made aware of the reporting requirements of the law in a closeout conference.

IMPORTANT: If the audit results in additional tax the post-audit discussion must be held with an individual that is authorized to make payment for the business being audited. If this is not possible the audit documentation must explain why. Reference: Chapter 7 - "TPS Acceptance Sample Rationale", question #8 for additional information concerning post-audit discussion when employer owes additional tax.

If the post-audit conference is held with a representative not previously designated, in addition to the name, title, and telephone number of the designated representative, the auditor must also provide the name, title and telephone number of the person who designated that individual for the post-audit conference.

3.7.1 Post Audit Findings Letter

A blank copy of the Post Audit Findings letter may be found in the Miscellaneous Section of this manual.

A Post Audit Letter - FL-92 must be furnished to each employer audited. The Auditor requests either a letter indicating that changes were necessary as a result of the audit or a letter indicating no changes were required. The screen print requesting the particular letter will become part of the audit work papers.

The Post Audit Letter is generated via a request through the mainframe audit system on the SL - Select Audit Letters Screen. Instructions about how to request a Post Audit letter may be located in the Index section of this manual.

If the employer fails to receive a post audit letter, the Accounts Examiner may generate a second letter. This action should be explained in the comments and narrative section of the C-51 report.

Last Revision: May 05, 2011

[ 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

Chapter 3: Conducting the Audit

3.7 Post Audit Conference

3.7.1 Post Audit Findings Letter