Tax Issues for Auditors

This course will outline key tax issues that auditors should be aware of when assessing risk of misstatement within financial statements. This knowledge will assist in auditing areas of taxation and in general conversations with clients.

This course is distinct from “Tax Update for Audit and Accounts Staff” which will look at new developments over the last 6 months, this course considers new and longer-standing issues that could materially or significantly affect company financial statements. All issues are presented with the view of identifying and addressing audit risk. It is not anticipated that the audit team will resolve tax issues arising.

The content will include:

• Corporation tax rates and payment dates
• VAT is a sizeable component of most transactions – what can go wrong? This includes:
  • VAT and property transactions
  • VAT and international transactions
  • VAT post Brexit
  • Identifying supplies that should not be standard rated
  • The reverse charge in the construction sector
  • VAT common mistakes
• Employee and Director remuneration considerations
• Off-payrolling and running supplier invoices through the payroll
• Capital versus revenue expenditure for tax purposes
• Capital allowances – key risks of error including categorising plant and buildings
• Loan relationships and derivative contracts – identifying when tax doesn’t follow the accounts
• Fair value and revaluation adjustments
• Corporation tax losses and group relief
• Error correction and penalty calculations

The course includes a checklist of the tax issues discussed to aid with practical implementation of the knowledge on audit field work.

For the course outline for Tax Update for Audit and Accounts Staff, click here.