Conducting e-Audits is one of the approaches the ATO uses to ensure that businesses are paying the right amount of tax by assessing the integrity and governance controls of business and IT systems.
It involves obtaining electronic data to compile, verify and analyse electronic record keeping and accounting information taxpayers provide.
If a taxpayer is selected for a client engagement activity, an audit or a review, and they maintain electronic records, the ATO may consider the use of e-Audit to obtain and analyse their records.
Benefits of an e-Audit
The of e-Audits include:
- Providing cost savings, as the ATO will ask the taxpayer to provide them with the information electronically, which will result in less requests for paper copies of transaction or reports;
- Minimizing disruption to the taxpayer’s regular business activities, as the ATO will spend less time at their premises;
- Allowing the ATO to analyse electronic information more efficiently, accurately and thoroughly than existing manual methods; and
- Providing taxpayers with a risk assessment of their IT systems.