How to Download California Audit Manual Chapter 4, General Audit Procedures PDF
It is not the purpose of the Audit Manual (AM) to lay down rules so rigid the auditor is precluded from the exercise of reasonable judgment. Suggested procedures that conform to standard audit practices are presented with an explanation of the terms frequently used by auditors. The auditor should recognize, however, that there are many variations necessitated by application of the law, rules and regulations, taxpayer’s methods of reporting, and types of records encountered. For these reasons, it is impractical to present procedures that will be applicable to all situations. The typical flow of the audit process is illustrated in Exhibit 1. The primary objective of the audit program is to determine, with the least possible expenditure of time, the correct measure of tax. The audit program provides information and assistance to taxpayers, enabling them to complete returns and pay taxes correctly and efficiently. Interpretations of the law and related regulations during the audit process provide taxpayers with proper basis or method for reporting future tax liabilities. AM sections 0401.00 and 0402.00 apply to audits, field billing orders and claims for refund. Completion of Form CDTFA-414-Z, Assignment Activity History, (CDTFA-414-Z) using the 414-Z Program is mandatory for all audit assignments (including reaudits and claims for refund). See AM section 0221.00. Specific reference is made to the glossary contained in AM section 0490.00 for terms peculiar to tax auditing which are used in this chapter. The auditor is expected to have a good working knowledge of these terms prior to reading this chapter.
