Public Sector > Taxes

Another major area for government work is in auditing the various taxes collected at local and national level. Tests are often very specific to the departments concerned but there are some general points.

The following are commonly used tests (grouped by type).

Analysis

  • Age analysis of arrears and split between type of charge
  • Analyse write-offs and refunds

Calculations

  • Proof of year-end balances and assessment of the arrears position
  • Calculation of tax is within feasible boundaries

Exception Tests

  • Test of validity of charge raised
  • Identify large write-offs and refunds
  • Check validity of reference numbers (e.g., VAT number)

Matching and Comparing

  • For property based taxes, cross-check to property register (if possible) to ensure a charge has been raised for each property
  • Check expenses claimed by one organisation tie in to declared revenue of supplier