Revenue Audit

Revenue audit is the audit conducted to check & verify the accuracy of expenditure incurred and the income/revenue earned by the business. In the revenue audit, an auditor focuses on the areas which affect revenue items of the business.

1. Testing of revenue accounts on your income statement
2. Examination of accounts receivable on the balance sheet

In case of revenue audit, company’s tax returns are matched with the tax records and auditors focus on one or more areas of the business. For ex – Financial statements, tax information, compliances or business operations. The main role of the auditor is to examine the existing system, report or entity. It is a two-part process in which auditor checks & verifies the figures and the information of company’s tax returns by comparing the same with the business records. Generally, auditor checks the income returns over a period of one year. In case auditor notices any discrepancy, they may review your previous records too.

Auditors help in identifying the tax evasion as well as additional liabilities too. They will also collect fines, penalties or interest wherever applicable.