Ryan McKenzie and I recently presented at the 2017 Corptax CONNECT conference in Las Vegas. CONNECT provides Corptax users with the opportunity to sharpen their skills, talk one-on-one with system experts and network with their peers. True Partners was proud to sponsor the daily raffle at this year’s CONNECT conference and Ryan and I led a session on Surviving a Tax Internal Controls Deficiency. (We hope this never happens to you, but if it does, we’re happy to share our expertise!)
Key Takeaways from the presentation were:
We received quite a few questions from session attendees and we wanted to share those with you, in case you might have the same question.
Q: What trends are you seeing in the area of internal controls?
A: Because Tax remains a top area for audit deficiencies, audit firms will continue to focus on tax processes. Management controls around completeness and accuracy remaining a priority, as well as a focus on technology and supporting the use of third party work and opinions.
Q: How can you leverage workflow technology for audit support?
A: Workflow tools can be useful in documenting higher level milestones for audit purposes. This serves as a clear standard and repeatable process and provides documentation for your auditors. It’s important to remember that when using tools to make sure that the procedures are reasonable and not overly structured which might overcomplicate the process.
Q: What are some best practices when dealing with a deficiency?
A: Develop an implementation plan with reasonable timeline and expectations. Don’t overpromise. Remember that technology is not a quick fix. Make sure that you are using technology in conjunction with a clear plan with goals and objectives. Finally, retain tangible evidence of improvements to support your remediation plan.
We had a great time at CONNECT 2017 and want to thank the Corptax team for putting on a great conference. If you would like a copy of the presentation slides or have any questions, please shoot me an email at Jennifer.Crawford@TPCtax.com.