Related Posts
What alt coins do you suggest I split $200 in?
Anonymous User
Which style home do you prefer and why?
More Posts
Conversation Starter
Additional Posts in Tax Bowl
Mentor
Is the market due for a correction anytime soon?
Coach
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
You know the auditors did not prepare the financials/TBs right?
Coach
We must stand together op. I hear you loud and clear. EY2- I don’t think he is saying that. There comes many times where questions arise with discrepancies in accounts where the auditors don’t care because of materiality.
Exactly, thank you!
I felt exactly like this as a staff. Fast forward to now and I really appreciate the auditors. The difference between then and now is before I tried to figure it out myself and spent hours on something spinning my wheels. Now I go straight to the audit team and let them explain it to me. They usually know exactly what you need and can answer it in 15 minutes, or they have the data you need, it just wasn’t crucial for the audit. Go talk to the auditors.
I mean... Everyone tries to act like materiality doesn't exist for tax purposes buuut it does kind of. The times it gets tough for me is when you have small entities as a part of a larger audit and the entire small entity is viewed as immaterial so little work is done.
As an exec or even in upper mgmt your time should only be spent worrying about items that have an effect on the business. If I have $1 billion in revenue, it is not worth the time to chase about $100,000 variances for a week. You have more important decisions that have larger dollars at risk. Now if the issues are all over then yes hou need to look into it but that's usually not the case.
Former auditor now tax staff. I know OP knows this but the end goals of an audit vs return are completely different. Audit fees would be astronomical if they set materiality suitable to a return level.
Plus audit workpapers will usually get you 75%+ of the way to a correct answer for a return adjustment
But the audit partners. Typically condescending and act like nothing can be more important than their job. Meanwhile, coninuous news of restatement and other issues within the audit practice...🤔🤔
Yo auditors are nice! They’re always coming in clutch with tie outs and stuff like that. So much better to ask them then the client
ALSOOOO... how about when they have a zillion topsides booked at the top co when there’s a dozen different regarded entities underneath.
Preach!
?
.