Tax Audit

Examine multiple sources of data as one to close the tax gap.

Tax Audit
Analytic Tests for Taxes

The U.S. Internal Revenue Service (IRS) estimates that more than $350 billion USD each year goes uncollected in taxes, and potentially into the underground economy. Known as the “tax gap,” the majority of these unpaid taxes are the result of individuals and companies understating or misreporting incomes.

As a tax auditor, how do you ensure that you are accurately reporting incomes and paying the correct amount of tax owed? The solution? CaseWare Analytics IDEA® Data Analysis software.

IDEA enables auditors to examine multiple sources of data as though they were one, and run simple tasks such as:

  • Reconciling general ledger, financial statements and tax returns
  • Summarizing tax returns to reconcile taxable earnings to payroll annual returns
  • Extracting sales transactions from unedited point-of-sales (POS) transaction files

IDEA offers its users many benefits, including the ability to:

  • Import an infinite number of records from practically any source, including bank account details, EIN, POS system data, ERPs, spreadsheets and more
  • Protect data integrity and ensure accurate assessments by allowing read-only access to data
  • Identify duplicates, detect gaps in numeric sequences, group data by categories, apply Benford’s Law, identify Fuzzy Duplicates and filter numerous rows and columns of data in seconds for tax audit specific functions
  • Automate repeatable processes by recording every analytic step

IDEA is trusted by auditors, accountants and financial professionals around the globe, including various federal tax authorities such as:

  • The Canada Revenue Agency—the Canadian federal tax authority—which uses IDEA to apply Benford’s Law as a risk-assessment tool. As noted in Sunder Gee’s book, Fraud and Fraud Detection: A Data Analytics Approach, Canada Revenue Agency also uses IDEA to identify zapper activity.
  • The Czech Tax Authority, which uses IDEA to review its accounting and accelerate its review process, as noted in Deloitte’s July 2010 edition of Tax & Legal News.

Contact us at 1-800-265-4332 ext. 2800 or salesidea@caseware.com to learn more about what sets IDEA apart and how you can put it to work in your organization.

 

Download the brochure

 

 

Purchases Tax

  • Purchase VAT Return Detail Summary
  • Purchase VAT Return Summary
  • Transactions with a Specific VAT Code
  • Forward Posted Transactions
  • Posted Before Transaction Date
  • VAT Control Accounts
  • Transactions Excluding Specific VAT Code
  • Account Number Summary
  • Stratified Purchase VAT Summary
  • Purchase Account Summary
  • High Value Input Tax
  • VAT Difference
  • VAT Only Purchase
  • Purchase Credits without VAT
  • Purchase Invoices without VAT
  • Rounded Amounts
  • Duplicates by Absolute VAT Value
  • Duplicate Search
  • Text Search
  • Missing Transaction Date
  • Missing Transaction Number
  • Transaction Date Search
  • Random Sample

 

Sales Tax

  • Sales VAT Return Detail Summary
  • Sales VAT Return Summary
  • Transactions with a Specific VAT Code
  • Forward Posted Transactions
  • Posted Before Transaction Date
  • VAT Control Accounts
  • Transactions Excluding Specific VAT Code
  • Account Number Summary
  • Stratified Sales VAT Summary
  • Customer Account Summary
  • High Value Zero Rate Sales
  • VAT Difference
  • VAT Only Sales
  • High Value Sales with VAT
  • High Value Sales Credits with VAT
  • Duplicate Search
  • Text Search
  • Missing Transaction Date
  • Missing Transaction Number
  • Transaction Date Search
  • Random Sample