Auditing, taxes Essay Example | Topics and Well Written Essays - 750 words

Auditing, taxes - Essay Example A sample survey and research has revealed a disturbing 16 percent of the audits contain deficiency in maintaining professional ethics in practice. It is but natural for an environ of fast paced competitive economy to witness instances where the issue of ethics is blurred by blatant violations, deficiencies and compromises. JEEP is authorized to deal with deficiencies in audit, violations of code of conduct, testing of internal controls and compliances, and practitioners are under an obligation to cooperate with any investigative communication received from a statutory agency in matters pertaining to audit. Erring members and clients have the options of taking corrective measures, cooperate and comply with the regulatory agency's communications and enquiries, and document their compliance appropriately. Inadvertent errors are damaging and consequential too and corrective measures have to be approved and documented by JEEP. (Ibolya Balog; Thomas R Clay). It is the duty of every corporation and earning individual to pay taxes on the taxable income and sales. However, in the process of paying taxes, the taxpayer may be either parting with more information than necessary, or knowingly or unknowingly hiding information. The existence of additional information could prove to be an irritant later on even if it has no relevance. Getting to know one's minimum tax obligation is a good way of organizing precise tax plans and information. Taxpayers need not volunteer more information than what is required. (Blum Shapiro). Coming to the state tax departments, there is the tendency to vigorously pursue statistical data that help to generate maximum revenue. In other words, the state resorts to witch-hunting tactics by using statistical information to maximize revenue when its responsibility lies in ensuring compliance. Most of these statistical data may have come from extra information unwittingly provided by the taxpayer. With easy access to electronic information and statistical data, there is tremendous potential for the state to uncover purported instances of underpayment. The taxpayer can avert this possibility by confining his statements and figures to only the required level. The ideal option for the state is use of strategies that ensure compliance. (Rocky B. Cummings). Sources: Blum Shapiro, Year End Tax Planning Strategies, Tax Trends, November 2006, http://www.blumshapiro.com/pub/taxtrends/TaxTrends_November,2006.pdf. Ibolya Balog; Thomas R Clay, Ethics, Pennsylvania CPA Journal, Winter 2008; 78, 4; ABI/INFORM Global, p. 22, http://www.academia-research.com/files/instr/215148_PART(1).pdf. Rocky B. Cummings, Too Much Information, Tax Trends, Journal of State Taxation; Nov/Dec 2007, ABI/INFORM Global