Management and Organizational Studies 1023A/B Lecture 5: Chapter 5 Audits and Fraud

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

Document Summary

Tax auditing: (*these audit reviews don"t happen every year they can be random so look at your payroll you have to accept it) *going to look for red flags these things trigger audits. *pay roll audit will want to look at payroll and t4, general ledger, canceled checks, direct deposits. Income tax corporation, government wants to make sure the government is paying the appropriate taxes. Permanent differences never get to cut taxes, revenue canada doesn"t let you deduct full expenses on some deductions. Temporary (timing) difference not on your schedule, it"s on revenue. 16-10-6 (cid:0) improving the risks internal controls. Internal auditing will look at: (cid:0) smaller companies don"t always have an internal audit. Effectiveness (doing the right things) and efficiency (doing things right) of operations are we protecting the assets on behalf of the shareholders. Reliability and integrity of financial and operational information. ** enhance credibility of statements third-party review.