I started working for an engineering corporation and we got the news that we are being audited. I just talked to the financial manager (aka owner's wife) and she just told me that they get audited every year and that it is normal for corporations. Is this normal? It seems really shady.
2007-11-08 04:16:32 · 3 answers · asked by dangergirl7121 2 in Business & Finance ➔ Taxes ➔ United States
It is being audited by the state of Lousiana. But it does make sense that an outside company would audit a corporation for its stakeholders. Thanks.
2007-11-09 13:33:16 · update #1
Audit by the IRS or a third party such as a CPA firm? If it's a third party firm then there's nothing abnormal going on considering you work for a corporation. Corporations are audited on an annual basis to express the financial position of a company for outsiders (such as investors and lenders). I'm assuming you meant financial audit as there are many other types as well that your corporation may be subject to. IRS audits on the other hand do not typically occur annually for the same corporation. It's understandable that you're a little weary if this is the case, then again I don't know which company you're employed by.
2007-11-08 05:37:35 · answer #1 · answered by mplsundin 4 · 0⤊ 0⤋
What kind of audit?
Most companies are audited by a CPA firm annually.
Even the IRS doesn't audit every year.....unless it keeps finding things that aren't being fixed.
Most people assume "IRS" when they hear the work "Audit" but this is usually not the case. Personally, in the past year and a half, I have had to deal with about 12 audits but not one of them was from the IRS. (Ahh....the joys of doing business in every state........)
2007-11-08 04:29:16 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
Being audited by their own accountants is normal and unremarkable.
Being audited by the IRS annually is typical for Fortune 500 sized companies.
2007-11-08 04:36:17 · answer #3 · answered by mattapan26 7 · 1⤊ 0⤋