Milwaukee Accounting

What is an audit?

An audit is an evaluation of an organization’s financial and other policy documents.  They are generally performed to establish if full and complete records are being maintained and whether these records can track all revenue and expenses as well as make a case for those funds have been spent in following the appropriate suggestions.  The audit also assures the owner and any other interested party the reports are valid and trustworthy.  Audits might be performed internally ( conducted by an organization’s workers, generally to stop crime or appraise internal controls ) or outwardly ( performed by outside parties to guarantee objectivity – the outside parties are often certified public accountants who write an opinion how precisely and reasonably financial statements represent an organization’s financial position ).

What is an IRS Audit?

An IRS audit is sometimes a review of your tax return to ascertain its accuracy.  It is not an accusation of wrongdoing.  But it’s critical to know that you, the taxpayer, have the burden of establishing that your return is correct.  The IRS does not need to disprove anything.  As an example, if you gave $100 worth of old clothing to a charity but did not receive an invoice or have other evidence that such a gift was made, you might be in trouble if you’re verified.  If the IRS questions the deduction and you cannot provide correct evidence a gift, in such amount, was made, the reduction might be disallowed.

A Milwaukee accounting firm can be your source for an internal audit to make sure your company is doing it’s bookkeeping correctly. You can also use an accountant to represent you in front of the IRS.