Internal Revenue Service

Furniture Manufacturing: IRS Audit Techniques Guide Internal Revenue Service

In the past, various guides have assumed that an examiner possessed a certain skill level regarding corporate audits. Balance sheet techniques may have been mentioned but not spelled out in detail. In this regard, this guide has taken a slightly different approach. Basic audit techniques are still used during this study, but for purposes of this guide, they are outlined in a step-by-step fashion and explained in detail. Basic audit steps such as reconciliations, comparatives, balance sheet analysis, and even the initial interview have been integrated in this guide so that hopefully, an examiner can read a training manual or the Internal Revenue Manual (IRM) and see how audit steps are implemented in the course of a furniture audit. Every attempt was made to include citations from the Internal Revenue Code, Treasury Regulations, Revenue Rulings and Procedures, and the IRM so the examiner could be assured of locating the basis of any conclusions drawn.