July 11, 1990
REVENUE AUDIT MEMORANDUM ORDER NO. 1-90
| SUBJECT | : | Procedures and Techniques in the Audit of Value-added Tax and Prescription of the Minimum Reporting Requirements |
This Order outlines the procedures and techniques in the audit of value-added tax and prescribes the minimum reporting requirements.
PRELIMINARY APPROACH TO VERIFICATION
Essential to an effective audit of value-added tax is the familiarization with
— the business organization of the taxpayer, and whether it has business establishments other than its main or head office;
— the economic activity, whether concerned in the sale of goods and, or sale of services, etc.
— the accounting methods and policies, and the degree of internal control, etc.
It may also be necessary to refer to the report of the audit of the value-added tax liabilities of the taxpayer for the immediately preceding period in order to be aware of the deficiencies that were reported, but may have remained uncorrected in the current period under audit.
I. AUDIT OF SALES AND OUTPUT TAX
A. Gross Taxable Sale of Goods and Services
1. Reconcile the amount of...
