October 18, 1995
REVENUE AUDIT MEMORANDUM ORDER NO. 2-95
| SUBJECT | : | Updated Handbook on Audit Procedures and Techniques |
| TO | : | All Internal Revenue Officers and Others Concerned |
I. OBJECTIVE
This Order provides the basic procedures and techniques in the audit of tax returns. It has been designated to ensure that the revenue officer acquires useful auditing skills and equip him with the knowledge required for the proper examination of tax returns through the use of the Updated Handbook on Audit Procedural and Techniques.
II. QUALITY AUDIT
The purpose of auditing a tax return is to determine the taxpayer's substantially correct tax liability. A quality audit is the examination of the taxpayer's books and records in sufficient depth for the purpose of ascertaining the correctness and validity of entries and the propriety of application of tax laws. To ensure quality audit of tax returns, revenue officers are enjoined to utilize their technical skill, training and experience, and follow the minimum audit procedures prescribed by this Order under Annex "A" hereof.
III. REPORTING REQUIREMENTS
Revenue Officers are required to make a report after the...
