The audit of taxes includes:
A) only liabilities.
B) both liabilities and receivables.
C) both balance sheet and income statement accounts.
D) only a review of current and prior years' tax liability.

Question

Quizplus · Accepted Answer

The audit of taxes includes both balance sheet and income statement accounts as well as liabilities and receivables. It involves a review of both current and prior years' tax liability as well as ensuring compliance with tax laws and regulations.

The Audit of Taxes Includes