Tax Auditing Essay

The effectiveness of tax auditing means that the tax auditors had performed an effective work without any impact on the tax payers. There are five factors that considered as the determinants for the effectiveness of tax auditing, which are audit quality, management support, organizational setting, attributes of the audited party and organizational independence. The tax audit effectiveness also refer to the ability and capability of a tax audit to provide useful findings of auditing and recommendations which would attracted the management’s interest. The management that support with resources and implement the recommendations of tax audit is essential for reaching the tax audit effectiveness. Besides, the organizational setting in operations

Audit quality is one of the most prominent factors on determining the effectiveness of tax auditing. Audit quality is proven by the capacity of office in order to provide useful tax auditing findings and recommendations. The auditor is required to meet the performance standards which able to perform well in work by providing useful audit findings and recommendations for improvement. The office’s capability to correctly plan and perform the audit findings is considered as a proxy of audit quality. Therefore, the high audit quality could lead to an effective tax

Audited party attributes interrelated to the ability of the audited party to achieve expected goals. Implications of audited party attributes on tax audit effectiveness consist of the ability of audited party to effectively and efficiently meet the sub-goals of organization, attitude of audited party towards tax auditing and the cooperation level provided to the auditor. The auditors are required to fully and unlimitedly access to all activities, records and properties and cooperate with the audited party in order to attain an effective tax auditing work. Hence, the attributes of audited party have a positive effect towards the effectiveness of tax