March 10, 2008
REVENUE AUDIT MEMORANDUM ORDER NO. 001-08
| SUBJECT | : | Computer Assisted Audit Tools and Techniques |
| TO | : | All Internal Revenue Officers and Others Concerned |
I. BACKGROUND
Information Technology (IT) has caused the present pervasive use of Information System tools for taxpayers to conduct their business and has changed rapidly the manner of recording transactions. Indeed, technology is so pervasive that it would be difficult for many taxpayers to meet their accounting and financial reporting objectives without using technology. The changes in the use of information technology by business have had a profound effect on accounting and auditing because these records are almost universally recorded, processed, and reported digitally.
Consequently, changes brought about by information technology have changed the very nature of the evidence of transactions and have created a challenge for the tax auditors to maintain their competence. This is because the change in business process results also in the removal of traditional source of information in which conventional manual audit techniques become inadequate and therefore demands the creation of new audit procedures to conduct the tax compliance...
