🚀 go-pugleaf

A client is facing an upcoming Board of Equalization audit on his 
wholesale/retail business. Most of the wholesale is out of state, in 
state sales have resale cards on file. The retail is a small part of the 
total sales, and there are two part time employees. The business is run 
as a sole proprietorship, the owner files a Schedule C on his 1040.
What will the auditor look for when looking at check registers, cancelled 
checks, bank statements, etc.? This is being called a *routine* audit, 
which it may be, but we suspect some dirty dealing by retail competitors. 
This is not paranoia, this is a real possibility in the particular market 
because it has happened before. What does an auditor look for? What 
things trigger questions and further investigation? What is the best 
strategy for approaching the event? The client has spoken with a CPA who 
is a former state auditor. Still, there are questions. 
You know how scary it can be when it's your first time.

-- 
                               Thomas Leal
                            The Synergy Group
                  Voice: 510-938-7748  FAX 510-943-7034
                   Internet:  tomleal@synergygroup.com
        
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