Use your knowledge of the definition of auditing and Figure 1-1: Audit of a Corporate Tax Return to explain how an auditor would conduct a Corporate Tax Return audit.
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Question

Quizplus · Accepted Answer

The Answer is First,the concept of a competent,independent person requires that the practitioner who is conducting an assurance engagement should have "adequate proficiency," which means that the tax auditor should be competent in the fields of taxation and the fields that need to be assessed,such as accounting,information systems,data management and access and internal controls.The auditor should also use due care and have an objective state of mind.This means that the auditor should be independent of the client and do their best using their skills when conducting the audit.
The second part of Figure 1-1 relates to accumulation and evaluation of evidence using a risk-based approach.This means that the auditor would collect evidence based upon risks of violations in the tax return by the client.
The next three parts are connected.The auditor determines the correspondence of the information provided by the client (which could be the financial statements,tax return and the quality of the calculations within the tax return)to established criteria (the Income Tax Act).
Finally,the auditor issues a report (Notice of Assessment)to summarize the findings.

Use Your Knowledge of the Definition of Auditing and Figure