Welcome to series of GST educational posts --> Do You Know GST Risk Based Audit.
As usual, this 5 minutes educational posts explain WHAT, WHY, and HOW.
Do You Know GST Risk Based Audit?
Risk based audit approach leveraging on technology and matematical formula to identify audit target. This audit approach targeted on :-
- Companies traded with entity with significant ''audit exception" ;
- Companies with regular trading losses;
- Companies identified with errornous record (during audit);
- Conpanies with frequent Return Amendment Do You Know About GST Return Amendment;
- Companies with abnormal trading trend.
Do You Know GST risk based audit -
- Readiness of tool to pull (and mapped) data from variety of data sources;
- Readiness of technology tools shorten audit lead time, enable audit resources carried out more audit
- Law enforcement readiness. For details readding, please read Top 7 GST offences and risk
- Important funding source to fund government OPEX and CAPEX
GST risk based audit - SME readiness?
(1) Effective tools & technology
- Majority of SME used stand alone supporting details or spreadsheet.
- Completeness and standardize storage of such records, and easy retrieval of such records (NOTE);
- Lack of audit tools, such as EXCEL audit file
(2) GST Resources
- Employee turnover and limited competent accounting resources is an on going challenge.
(3) Frequent GST amendment
- Errors due to incomplete supporting;
- Wrong tax code used. Thus, wrong tax rate applied.
- Additional details please go to Do You Know About GST Return Amendment
Custom expectation on record storage.
Please refer to GST Duty to Keep Record
SOLUTION - GST Audit Tool?
GST Audit File with EXCEL Macro function is able to:-
- Consolidate all GST return data in a single file.
- Taxpayer's GST database (since day 1) is now in a single file.
- Automated audit check and analysis report will be available within 2 days (NOTE)
Risk assessment score and solution is included in report and recocommendation
For details, please read GST Health Test Report
Feel free to comment and ask question about this issue