The following types of reports are prepared in the everyday practice of the audit section:
– Confidential reports
– Audit reports
– Inspection Acts
– Verification Acts
– Ascertainment Acts
– Confidential reports are prepared by the auditor who presents them to the Head of LTO in case of tax fraud detection or evasion in very high values or special situations. These reports briefly describe the findings and the arguments to begin an investigation in cooperation with economic crime structures, judicial police and the preliminary needs for additional audit resources. Confidential reports are also presented when the auditor considers it reasonable that certain problems remain confidential until they are discussed with the Head of LTO.
– Audit reports are prepared on the basis of the audit program, describing its implementation and findings during the audit. This type of report should meet the following requirement:
a. It should be accurate, supported with facts, explicit, complete, concise, non-emotional, non-personal, objective and timely.
b. Findings should comply with program requirements and be supported with appropriate justifying documents;
c. Conclusions should comply with the findings and serve to minimize violations and unreal declarations in the future;
d. The audit content should state the auditor’s ascertainments based on the findings;
e. The form, content and structure of the report should match the requirements of this Manual.
– Inspection act is a report prepared by the auditor upon a request from the head of section. These reports describe the situation and progress in the implementation of the fiscal visit to the taxpayer at a certain point in time, findings, problems and barriers, respect of deadlines for finalizing the audit, needs for additional audit resources, etc, and other needs. After having received the inspection act, the head of section, when necessary, assigns additional duties and takes additional measures to continue with a full audit and implement the additional program.
– Verification act is a report prepared when it is necessary to verify information, duties assigned by superiors or verification cases with a special object c the head of section and Head of Large Taxpayers Office. The verification act contains a description of the duty and its execution and has to do with a limited number of duties, which do not contain elements of the types of audit mentioned above.
– Ascertainment act is a report similar to a presentation of facts related to a particular violation or irregularity which have the power of arguments used in a formal record. In every case, this type of act is used to snapshot a given ascertainment, providing an argument as to the nature and legal justification which the auditor does not agree with.