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Syllabus: CICTA 403
SYLLABUS CICTA 403 - ADVANCED TAX AUDIT AND INVESTIGATIONS PROFESSIONAL LEVEL
25.0 Course Objectives
The main objective of the course is to test students? ability in the application of tax audit techniques at the certificate level. It is to complement to the models at the certificate level at the advanced stage. The advanced level of this course is to assist students in investigating fraud cases, tax evasion and tax avoidance schemes, transfer pricing mechanisms and the strategy of income splitting.
25.2 Course Description
The course is designed to cover all taxes audit risk issues, risk assessment, fraud and error and intentional manipulation of the income statement and balance sheet to lessen one?s tax liability. Mechanism to counter Tax Avoidance and Tax Evasion are the remote objectives.
25.3.1 Advanced Tax Overview
The background of Tax Administration.
* Proportional, progressive and Regressive Tax Systems.
* Direct and Indirect tax systems, Tax rates, Kinds of Taxes, Retirement Tax, Wealth tax and tax havens.
* The OECD countries and Tax Havens.
* Tax Avoidance and Tax evasion schemes, Tax incentives, Tax Advantages.
* The Canons of Taxation and the Socio - economic significance of taxations.
* Sources of Income subject to Tax. Topics include sources of taxable incomes; Resident persons tax status, Non- resident individuals, Residents Company, Residents body of persons, Residents, partnership and individual with permanent establishment.
25.3.2 The Significance of Audit Plan, Audit Procedures and Audit Evidence.
Internal Control and Internal Audit procedures in relation to audit risk.
* The elements of risk, fraud and error, the application of forensic audit and substantive audit.
* Risk assessment and audit working papers
* Computer audit test as applied in examination of employment income, business income, investment income and income from vocations.
* Fraud, irregularities and illegal acts in the examination of income statement, balance sheet and the cash flow statement.
25.3.3 The Issue of Tax Harmonization and the International Accounting Standards etc.
The challenges of tax harmonization and the international accounting and auditing standards
* International tax planning and business organization
* International corporate and non-corporate entity tax assessment.
* Taxation of non- resident and residents person
* The dual residency and tax havens
* The issue of international tax regimes
* Taxation of foreign businesses, employment, investments and vocational incomes.
25.3.4 The Investigative Process in Shares Acquisition and Other Equities
The Investigative process in post balance sheet events
* Tax examination of reserves and liabilities
* The issues of audit risk and stock taking
* Verification of going concern, valuation and capital allowance.
* Tax examination of tax expenditures
* Responsibilities of directors and external auditors in tax compliance
25.3.5 The Tax Auditor and External Confirmation
Tax audit procedures and risk investigations
* Tax audit procedures on income ascertainment
* Tax audit procedures on expenditure ascertainment
* Sampling risk and forensic investigations
* Materiality concept and tax audit investigations
* Computer assisted audited techniques (CAAT) relating to income and expenditure
* Risk in stock taking
* Risk controls in sales department
* Tax auditor's independence
* Tax auditor's procedures and VAT - Input and output tax including refunds
* Tax audit procedures on import and export duties
* Cost of Freight and Insurance (CIF) investigations
* Tax auditor's report