Audit forms are used to examine and evaluate an organization's or individual's accounts and financial information, typically to ensure the fiscal accuracy and legal responsibility of that individual or organization, according to Investopedia. The specific forms used often depend on the type of audit, the complexity of items under review and the availability of requested information, according to the IRS.Continue Reading
Selection for an audit is either random, due to incorrect document matching or because of specific importance in related audits. An organization's audit may be either internal, specifically by the employees of said organization, or an outside firm conducts the audit. However, the Internal Revenue Service audits individual taxpayers in the United States. Audit forms are used in both cases, and for the individual taxpayer, the IRS often provides a written request for specific documents, according to Investopedia.
At the conclusion of the audit, if the auditors have found any improprieties in the accuracy and legality of the individual's or organization's financial accounts, such as if an organization misrepresented its actual expenses, than either entity can be penalized, sometimes severely. If an individual disagrees with the findings of the audit, he can utilize an appeals mediation program or file a formal appeal request, according to the IRS.Learn more about Taxes