Profectus can perform two types of GST audits for our clients depending on their preference and objectives. The two types of GST audits Profectus offers are:
GST Recovery Audit
GST Transactional Compliance Audit
GST Recovery Audit
The GST Recovery Audit examines historical Accounts Payable transactions to identify those transactions where GST has been incorrectly calculated or incorrectly processed resulting in GST input tax credits being expensed rather than taken up in your Business Activity Statements.
Profectus identifies these erroneous transactions, documents them and prepares a listing of amendments for your next Business Activity Statement.
Key drivers of errors in GST calculation are poorly designed supplier invoices, financial system set-up errors and processing of undetected invoice errors. Profectus identifies the causes of GST-related errors and recommends measures to reduce this type of financial leakage from your business.
The benefits of the GST Recovery Audit include:
• financial inflows of GST input tax
credits rightfully claimed from the ATO
• identifying the causes of GST-related financial leakage
• recommendations on how to reduce GST-related financial
leakage
• an additional check of your system structure and set-up
relating to GST status of suppliers.
The GST Recovery Audit is offered on a success fee basis.
GST Transactional Compliance Audit
The GST Transactional Compliance Audit utilises the data mining and FTA auditing expertise of Profectus to review the integrity of GST processing of all transactions in both Accounts Payable and Accounts Receivable. This audit is undertaken by clients with a strong compliance focus to test that Accounts Payable and Accounts Receivable transactions are correctly processed through their financial systems.
This audit differs from other GST reviews in that it involves exhaustive data mining of your transactions and focuses on the results of transactions processed through your systems rather than looking predominantly at the systems themselves.
The GST Transactional Compliance Audit complements other compliance activities that you might already utilise to understand your level of GST compliance such as system mapping, walkthroughs and staff interviews. We know that the ATO is increasingly applying their own data mining approaches to GST Transactional Compliance in audits.
The benefits of the GST Transactional Compliance Audit include:
•
improved visibility of the accuracy of the processing of GST-related transactions
• a report outlining recurring processing errors and other areas of non-compliance
• practical recommendations on how to remedy errors and areas of non-compliance
• a bottom-up check of system structure and set-up for appropriate categorisation
into taxable/non-taxable
status of entries in your supplier master file
and (where relevant) your stock master file
• demonstration of a proactive approach to compliance in the event of any
ATO reviews or audits
• the opportunity to quickly remedy any areas of non-compliance, potentially
avoiding fines and the
disruption of any expanded ATO audits.
The GST Transactional Compliance Audit can be provided on either a fixed fee or hourly rate basis.
