Audit findings1/30/2024 This may not be true when writing external audit reports. Generally, internal audit reports can be written with more technical terms because the reader will understand the relation to the processes at the company. They will expect to see a list of specific findings. Internal audit reports are typically sent to the process owner or department manager. Writing a great audit report requires that you put yourself in your audience’s perspective to make sure the content is understandable and what the audience expects. This is particularly true for compliance audits where the findings are written in regulatory jargon so that the meaning of the finding is not clear. This may seem like common sense, but many audit reports are confusing to the recipient or not at the right level. One of the more difficult aspects of writing an audit report is understanding your intended audience. It will conclude with another important aspect of writing a great audit report: timely distribution so the results of the audit are kept fresh and current. This article will also cover writing audit reports for both internal audits and external audits, such as supplier audits or compliance audits. We will discuss some of the best practices for audit report writing to ensure that the content of an audit report is not merely sufficient. This article will discuss how to write a great audit report so that whether it’s used internally or externally, the audit report conveys the proper information. However, auditors are often frustrated when their audit reports are not taken seriously or used effectively because they do not provide meaningful information. Preparing for and conducting an audit are the initial components of the audit process writing a good audit report is the final step. Here are some ways to get your point across effectively in your audit report. "The letter was a very positive development, affirming what initially found in our paper that showed that Black taxpayers were audited three to five times the rate of non-Black taxpayers - and that there really are meaningful ways in which to think about audit selection to improve that state of affairs," Ho said.Communicating the results of an audit is just as important as performing it. The IRS, which will receive nearly $80 billion in funding through the Inflation Reduction Act, says it plans to use some of the money to understand "any potential systemic bias" within its compliance strategies and treatments, according to the letter.ĭaniel Ho, faculty director of the Regulation, Evaluation and Governance Lab at Stanford Law School, told NPR he's pleased to see that the agency has dedicated resources to better understand the disparities in tax audits. That study suggests the main reason behind the unfair treatment is the way audits are administered through the Earned Income Tax Credit (EITC) - a tax break designed to supplement the income of low-wage workers. The findings from the agency's internal investigation come after researchers from Stanford University, the University of Michigan, the University of Chicago and the Treasury Department in January reported findings from a study that Black Americans are three to five times more likely to have their federal tax returns audited than taxpayers of other races. "The racial discrimination that has plagued American society for centuries routinely shows up in algorithms that governments and private organizations put in place, even when those algorithms are intended to be race-neutral," said Wyden, calling the racial bias "completely unacceptable." Senate Finance Committee Chairman Ron Wyden., D-Ore., echoed in a statement Monday that audit algorithms are the root of the problem of racial bias in audits. Werfel said the agency is "deeply concerned" by the findings from its investigation and is committed to doing the work to understand and address any disparities in its practices. "We are dedicating significant resources to quickly evaluating the extent to which IRS's exam priorities and automated processes, and the data available to the IRS for use in exam selection, contribute to this disparity," Werfel said in the letter. In a letter to the Senate Finance Committee on Monday, Werfel said the agency would review its audit algorithms for specific anti-poverty tax credits to look for and address any racial biases. "While there is a need for further research, our initial findings support the conclusion that Black taxpayers may be audited at higher rates than would be expected given their share of the population," IRS Commissioner Daniel Werfel told lawmakers. Black taxpayers are audited at higher rates than other racial groups, an internal IRS investigation has confirmed.
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