AUDIT

TAXES AND LEGAL OBLIGATIONS

  1. Do you maintain a tax calendar showing when the various requested federal, state, and local reports are to be filed or payments made?

  1. Is someone specifically responsible for all tax reports and payments?

  1. Do you keep adequate individual payroll records to ensure that quarterly payroll returns for state and federal tax authorities may be completed without undue difficulty?

  1. Is the person who prepares your payroll kept up-to-date on maximum wages for payroll tax purposes?

  1. If your payable withholding is above the minimum amount, are you making timely deposits with a federal depository?

  1. If some of your sales are subject to state or local taxes, do your records adequately differentiate between taxable and nontaxable sales?

  1. Do you have adequate equipment records, giving the date purchased, basis of the asset (cost or otherwise), estimated useful life, method of depreciation, accumulated depreciation, and location of the asset?

  1. If you have a pension plan or a profit-sharing plan, have you conferred with your attorney regarding reporting requirements to the government and to the employees?

  1. Are all necessary business licenses up-to-date?

Source: U.S. Small Business Administration, Management Audit for Small Service Firms, Small Business Management Series No. 38, Washington, D.C., 1979; John B. Kline, U.S. Small Business Administration, Management Audit for Small Manufacturers, Small Business Management Series No. 29, Washington, D.C., 1979, Small Business Administration, Management for Small Retailers, Small Business Management Series No. 31, Washington, D.C., 1979.

CHECKLIST EVALUATION RESOURCES AUDIT FEEDBACK HOUSE
Before You Start:
A Basic Checklist 		Business Plan
Evaluation Scale 		Small Business
and Entrepreneurship
Resources 		Small Business
Management Audit 		Feedback H o m e



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