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TAX AUDIT TEMPLATES

By:

Peter Elolo K. Darrah, C.A.(Gh) Tax Audit, DTRD, Ghana Revenue Authority elodarah@yahoo.com

+233244592866 +233202441763

02/02/2013

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Contents

INTRODUCTION: ................................................................................................. 3 FOLDERS .............................................................................................................. 3 LINKING CELLS ................................................................................................... 5 SHORTCUT KEYS:................................................................................................ 6 SECURITY:............................................................................................................ 7 CONCLUSION: ..................................................................................................... 8

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INTRODUCTION:

Owing to the change in preparation of accounting records by Taxpayers and their associates, auditors have no other choice than to model their working papers and presentations to suit these changes. We use to prepare working papers manually irrespective of the fact that the taxpayer auditee had prepared the records electronically. The appropriate action is to, at least, begin to use a spreadsheet application in preparing the working papers so as to enjoy flexibility, ensure accuracy, save time, perform analysis and thereby maximize the objective of the audit assignment. In this template, all working paper files are contained in one main Microsoft office excel folder created (i.e. as Taxpayer). A copy of this main folder is expected to be retained for subsequent use in any audit assignment. It is required to be copied and renamed as the taxpayer on each audit assignment.

FOLDERS

Microsoft Office Excel Programme (i.e. Office 2007) has been employed in developing the following folders/files in outline as follows:

On double-clicking or selecting the above folder and press enter (i.e. folder or file opening function) you have:

Your working paper subfolders are contained in the folder “taxpayer’s name”. On opening the taxpayer’s name folder (at this point you may press the F2 or fn+F2 key(s) to put the folder in the editing mode and rename it to the name of the taxpayer being audited) you have:

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You may continue by double clicking on ‘DIRECTORY’ above to have this:

The Directory contains all the auditing resources expected in the audit template folder. You may consider the Directory as a console or a launching pad for getting the resources and returning to it to get another. Any of these resources (sub-folders and files) is assessed from the Directory 4


workbook by a click. For instance, a click (just once) on 2008 Worksheets fetches the sub-folder for 2008 Worksheets as follows:

We have identical files in the other subfolders for 2009, 2010, 2011 and 2012. You may press the F2 or fn+F2 key(s) to put any of the files in the editing mode and rename it to the name of the taxpayer being audited. It is very important to do this in order that you might avoid making inputs into the wrong taxpayers file. However, you may prefer to maintain the linkages in the folder “taxpayer’s name”. Simply create a new folder for the taxpayer you are auditing and rename it. Select, Click and hold the “taxpayer’s name” folder and drag onto the new folder you had created to contain it.

LINKING CELLS

There is the need to establish relationships between the folders and files such that one needed to work and make changes in just one sheet or page to have an impact on the overall result of the audit.

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The file below contains a sheet named TaxPosition.

The TaxPosition file is linked to any file that has an exception worth taking up for inclusion in the Total Tax Liability. Cell Linkages are needed as well for summaries. A linkage is established as follows: Step 1: Open the two files in which you want a cell in each file (workbook) linked. Step 2: Put equal-to-sign (=) in the cell you want contents of the other cell you are linking to be (i.e. the destination). Step 3: Go to the other cell (i.e. the source) in the sheet within the same workbook or another workbook where the contents you want linked and select it. A small ring forms round the selected cell. Step 4: Hit the Enter Key once. You have completed your external link. The ability to link cells makes a great difference between manual process and this approach. One cannot make effective corrections or even work to the extent of having an impact on the overall result of the audit if the cell linking task cannot be performed.

SHORTCUT KEYS:

The following shortcut keys could help in saving time spent on performing some basic but important tasks: Press this key F1 Ctrl+C (or Ctrl+Insert) Ctrl+X Ctrl+V (or Shift+Insert) Ctrl+Z Ctrl+Y F2 or fn+F2 Ctrl+home

To do this Display Help Copy the selected item Cut the selected item Paste the selected item Undo an action Redo an action Rename the selected item Move the cursor to the beginning of the document 6


Press this key Ctrl+Right Arrow Ctrl+Left Arrow Ctrl+Down Arrow Ctrl+Up Arrow Ctrl+end

To do this Move the cursor to the beginning of the next word Move the cursor to the beginning of the previous word Move the cursor to the beginning of the next paragraph Move the cursor to the beginning of the previous paragraph Move the cursor to the end of the document

Ctrl+Shift with an arrow key Select a block of text Ctrl+A Select all items in a document or window F3 Search for a file or folder Insert a selected row or column in MS Excel (Hint: select row or Ctrl+Shift+plus column by clicking on the row or column label) Delete a selected row or column in MS Excel (Hint: select row or Ctrl+minus column by clicking on the row or column label) Ctrl+;(colon) Insert date in an MS Excel cell Ctrl+’(apostrophe) Repeat a an action in the previous MS Excel cell above Alt+Tab Switch between open items Alt+F4 Close the active item, or exit the active program

SECURITY:

It is possible to loose all your documents unexpectedly due to the presence of virus in your system; loss of soft materials. How about the possibility of hardware loss through theft, robbery, fire, damage etc.? That is all the more reason one needs to give prior attention to matters of security in a computing environment. To safeguard your work and system, please do the following from time to time:  Check on your system’s health status; Go to start and click on ‘control panel’ and then on ‘Review your computer’s status’ or ‘Action Center’ to check on the effectiveness of your Anti Virus Application.  Scan your system and memory sticks (pen drives) on suspicion of a virus.  Get a storage device i.e. pen drive, hard drive etc for backing up important documents. Hint: do not keep your system (computer) and the secondary drive together.

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 Important documents or files may be attached to emails or uploaded to a trusted site on a dedicated server e.g. google drive, sky drive etc.  Save MS Word reports in a PDF to avoid unwanted alterations.  You may put a password on your documents to restrict or prevent access. (Hint: please do remember the password).

CONCLUSION:

It is important to note that tax auditing starts with the returns i.e. financial statements figures. The sum of examined supporting schedules, invoices, receipts, books of accounts should be compared with the returns. The audit process therefore ends with the returns, as well. It is in this regard that a summary sheet is provided for any of the worksheets for the possibility of making a comparison between the returns sum and the books sum by the Auditor. Cell ranges of all sum functions needed to be carefully checked for accuracy before drawing conclusions. You may save on the Print Cartridge while printing by setting it up to be in the Fast Draft Mode. All completed jobs could be placed in one main folder. For example jobs executed in 2013 could be contained in ‘2013 Audits’ folder.

Thank you very much.

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Tax Audit Template Directory pdf  

audit work sheets

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