March 17, 2000
REVENUE AUDIT MEMORANDUM ORDER NO. 1-00
| SUBJECT | : | Updated Handbook on Audit Procedures and Techniques Volume I (Revision —Year 2000) |
| TO | : | All Internal Revenue Officers and Others Concerned |
I. OBJECTIVE
This Order prescribes the use of the Updated Handbook on Audit Procedures and Techniques (Volume I) in the audit of tax returns. The Handbook is intended to provide revenue officers with minimum standard procedures and a uniform guideline for the proper examination and/or investigation of tax liabilities. This updated version was prepared in order to conform with the provisions of the Tax Reform Act of 1997".
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 in the...
