A tax authority could have a number of reasons for initiating an audit. Internal reports and reviews usually identify specific taxpayers and/or accounts that need to be audited. The selection of taxpayers and/or accounts is based on specific criteria that the tax authority defines.
External interfaces could also send reports / information that prompt a tax authority to subject certain taxpayers to audits. The most common situation is when income information is reported for a taxpayer, who has either not filed a return or has filed but did not include that information.
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