Bank Audit Manual

February 28, 2000REVENUE AUDIT MEMORANDUM ORDER NO. 2-00SUBJECT:Bank Audit Manual   TO:All Internal Revenue Officers and Others ConcernedI. OBJECTIVES1. To provide Revenue Officers with an Audit Manual which contains uniform procedures and techniques in the investigation of taxpayers belonging to the banking industry for the purpose of ensuring the conduct of quality audit in view of the industry's peculiarities, nature of transactions and specialized accounting system.2. To prescribe mandatory reporting requirements for all cases involving taxpayers under the banking industry.II. RATIONALEThe banking industry has a significant impact of the country's economy. As such, it is governed by special laws and is being regulated by the Bangko Sentral ng Pilipinas. Due to the nature of business and existence of voluminous transactions, the banking industry has distinct accounting terminologies, procedures and practices, as well as financial reports. Aside from this, almost all banks have highly sophisticated computerized accounting systems. With these peculiarities of the industry and the advanced information technology being adopted by banks, it is imperative that the Bureau should have sufficient knowhow on the industry's operations...