An audit is an examination of accuracy of tax settlements. Audits may be performed to examine all kinds of taxes or selected tax areas. An audit may be carried out with the aim of detecting tax risks and non-compliance or areas for optimisation, or both.
Auditors need to pay a several-day visit to the Client in order to audit the source documents and tax procedures adopted and followed by the taxpayer. Usually, during an audit, only a sample of documents is examined, but our auditors will certainly detect the major accounting non-compliance which may lead to the highest amount of outstanding tax or pose the greatest tax risk. An audit is documented in a report summarising the procedures, identified non-compliance and recommendations.
An unquestionable advantage of an audit is that efficient implementation of the recommendations made in the final report enables the taxpayer to correct the non-compliance on its own and to be protected against the tax risks in the future. With the audit, the taxpayer may eliminate non-compliance before potential inspection and avoid fiscal and tax sanctions.
Given the low quality of the tax law in Poland, and the differences in interpretation of legal regulations, we recommend that you perform audits in your enterprise. A professional tax audit is an effective tax risk management tool in each business.