Upon completion of this course, participants will be able to:

• Develop a comprehensive, risk-based Audit Strategy Plan for the revenue agency.
• Design and implement an objective risk-scoring model for audit selection.
• Apply data analytics and third-party data matching for pre-audit risk assessment.
• Differentiate between various audit types (e.g., desk audit, field audit, sector-specific) and select the appropriate one.
• Manage the complete audit lifecycle, from notification to finalization and appeals.
• Ensure quality control, consistency, and legal compliance throughout the audit process.
• Calculate the return on investment (ROI) and other KPIs for the audit function.
• Understand the ethical and legal standards for conducting tax investigations.

• Tax Audit Managers and Supervisors
• Senior Tax Auditors and Investigators
• Data Analysts and Risk Specialists in Revenue Agencies
• Heads of Compliance and Enforcement Units
• Internal Audit and Performance Review Staff
• Consultants specializing in Tax Compliance
• Tax Litigators and Legal Advisors

• Hands-on workshop using a simulated risk-scoring model for audit selection.
• Case studies and role-playing on interview and evidence-gathering techniques.
• Group exercise: developing a sector-specific audit program (e.g., construction).
• Mock audit finalization and writing the assessment report.
• Discussions on the ethics of data-driven enforcement.
• Analysis of landmark court cases challenging audit procedures.

Unit 1: Foundations of Risk-Based Auditing

• Integrating the audit plan with the overall compliance strategy
• Defining audit objectives: revenue, compliance impact, and deterrence
• Allocating audit resources across tax types and taxpayer segments
• Measuring the tax gap and using it to inform audit priorities

• Moving from a random to a targeted, risk-based audit selection model
• Sources of risk data: internal filings, third-party data, external intelligence
• Identifying and prioritizing high-risk sectors, transactions, and behaviors

Unit 2: Audit Selection and Risk Scoring

• Selecting risk factors and assigning weights for objective scoring
• Using predictive analytics and machine learning in audit selection
• Implementing automated risk flags and alert systems
• Managing the selection of both high-risk and low-risk (deterrent) audits

• Data matching and reconciliation before the audit begins
• Gathering and analyzing taxpayer background and historical compliance data
• Establishing clear audit scope and objectives for the team

Unit 3: Audit Execution and Methodology

• Legal requirements for notification and document requests
• Conducting desk audits vs. field audits: best practices and differences
• Effective interview techniques and evidence gathering
• Dealing with uncooperative taxpayers and complex data environments

• Indirect methods of assessment (e.g., net worth, bank deposits analysis)
• Auditing specialized issues: transfer pricing, large corporate group structures
• Applying audit sampling and statistical methods

Unit 4: Quality Control and Finalization

• Developing and enforcing clear, standardized audit procedures and manuals
• Quality assurance and peer review of audit working papers
• Managing the technical complexity and legal challenges of audit findings

• Drafting and communicating clear, legally sound notices of assessment
• Managing the taxpayer’s right to appeal and the appeals process
• Referral of criminal cases for investigation and prosecution

Unit 5: Performance and Ethics

• Calculating the Audit Yield, Direct Yield, and Return on Investment (ROI)
• Using non-financial KPIs (e.g., deterence value, quality of assessment)

• Adherence to due process, taxpayer rights, and confidentiality
• Preventing corruption and ethical lapses in the audit function