In the audit of an individual's tax return, the auditor should demonstrate competence in the use of
A) external databases that contain economic statistics.
B) standard personal and corporate tax preparation software.
C) the Income Tax Act and accompanying regulations.
D) database management software for the use of client based research.

Question

Quizplus · Accepted Answer

The auditor must have competence in the use of the Income Tax Act and accompanying regulations to understand the rules and guidelines for individual taxation. While familiarity with tax preparation software and database management software may be helpful, they are not as essential as understanding the tax laws themselves. The use of external databases containing economic statistics may also be useful, but again, not as crucial as knowledge of the Income Tax Act.

In the Audit of an Individual's Tax Return, the Auditor