Question

If an agent were assigned an audit of an individual in a particular profession, where would he look for guidance on how to structure the audit?

A. Internal Revenue Service Manual

B.) Dunn & Bradstreet Reports

C.) IRS Audit Guide-line

D.) All of the above

E.) none of the above

Routine investigations of a taxpayer initially involve what type(s) of an agent?

A.) investigative agent

B.) special agent

C.) collection agent

D.) all of the above

E.) none of the above

Answer 1

For looking up the structure of auditing, Internal Revenue Service Manuel has to be looked up in. In the manual, all the audit technique guidelines are available which provides accounting methods according to specific industries.it involves each industries' s guidelines, terminology and business practices. Guidelines regarding the estimation and evaluation of income is provided in the manual which helps auditors in maintaining records.

For routine investigations of a taxpayer, collection agents or revenue agents are involved in the process which are responsible for collection,processing and auditing. But wherever there is a criminal activity may be involved, investigative agents are involved in the process.