20 Nov 13 ATO investigating out-sourcing "compliance" reviews (audits)
The ATO says that it is "exploring the concept of how basic assurance work might be done using existing external compliance-assurance processes (ECAP)."
As part of this project, the ATO will consider a new approach to risk-assurance work relating to some publicly listed companies. These would be taxpayers the ATO has categorised as "medium-risk" and have a turnover between $100 million and $5 billion.
Part of the potential approach is whether these taxpayers could choose to use a registered company auditor to provide assurance to the ATO on certain matters without the need for the ATO to conduct a review.
Matters where the ATO require assurance would be identified by the ATO and focus on matters of fact. Using ECAP approaches the taxpayer would be offered the choice of using their external auditor to carry out the fact checking. If a taxpayer did not wish to use their existing external auditor to provide the assurance, the ATO would conduct the review in accordance with its current review process.
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