Management and Organizational Studies 1023A/B Lecture Notes - Lecture 5: Financial Audit, Harmonized Sales Tax, Payroll Tax

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Conducting an official financial examination of an individual"s or organization"s accounts. To see if you followed the rules or are trying to cheat the system. To make sure the business is running the way it"s supposed to be. Management decides how it"s supposed to be. Management will send auditors around the factory to make sure medicine is being made properly. Comprehensive review of an organization"s adherence to regulatory guidelines. Examination of an entity"s financial statements and accompanying disclosures by an independent auditor. Make sure we are following tax rules. Cra inspects companies to make sure their taxes comply to income tax act (not. Differences (between income tax act and gaap: permanent differences. Something that applies in accounting rules that never will apply according to tax rules: temporary (timing) differences. You can record something for gaap and income tax act, but not at the same time.