Form Gt-800050 - Auditing In An Electronic Environment (E-Auditing) printable pdf download

GT-800050

R. 12/17

Auditing in an Electronic

Environment (e-Auditing)

If you use a computer to record your business activity and

maintain data electronically, you are a candidate for an electronic audit.

What is e-Auditing?

Electronic auditing, or e-Auditing, is computer-assisted auditing that uses electronic records to complete

all or part of the audit. If you use a computer to record your business activity and maintain this data

electronically, you are a candidate for an electronic audit.

Electronic Audit Techniques

We use a combination of purchased and custom-designed software to perform electronic data

conversion and analysis. E-Auditing uses various audit techniques, including electronic detail auditing

and sampling.

It is common to use more than one technique in the same audit. For example, sales and purchases of

fixed assets could be audited using the electronic detail technique, while expenses could be audited

using a sampling method.

Electronic Detail Audit

When performing an electronic audit, it may be possible to review every transaction in a file, eliminating

the need for sampling. If we can perform a detail audit within the same amount of time as a sample, a

detail audit will be performed.

Sampling

Sampling involves taking a segment of a much larger group or population and making a conclusion about

the population based on the sample results. Generally, a sample can be conducted much faster than a

detail audit and is, therefore, less costly for both you and the Department.

Under Florida Statutes any taxpayer paying sales and use tax to the Department and filing returns must

keep records and other information that will allow us to determine the correct amount of tax due. Section

(s.) 212.12(6)(c), Florida Statutes (F.S.), states that the Department may sample your records, when the

records are adequate, but voluminous.

According to s. 212.12(6)(b), F.S., if you do not have adequate records of sales or purchases, the

Department may project a deficiency from a sample of your available records. There is no provision in

s. 212.12(6)(b), F.S., to project an overpayment for taxpayers who do not have adequate records.

Frequently Asked Questions

If I maintain my data electronically, am I a candidate for an electronic audit?

Yes. If electronic data is available in any form, it may be used.

Section 213.35, F.S., states:

Each person required by law to perform any act in the administration of any tax

enumerated in s. 72.011 shall keep suitable books and records relating to that tax, such

as invoices, bills of lading, and other pertinent records and papers, and shall preserve

such books and records until expiration of the time within which the Department may

make an assessment with respect to that tax pursuant to s. 95.091(3).

Florida Department of Revenue, Auditing in an Electronic Environment (e-Auditing), Page 1

Form Gt-800050 - Auditing In An Electronic Environment (E-Auditing)