Respondent:

In connection to the researchers study, The Extent to which Tax Audit Practices of tax
Examiners of BIR Cagayan de Oro District Conform to the BIR Audit Procedures ad Policies
and to the Philippine Standards on Auditing, they are conducting a survey with your approval.
To provide the researchers with the information that they need for this study, they are
requesting that you may give some your time in answering this survey questionnaire. They
would be very grateful for your participation in this humble research.
Additionally, the researchers are hoping that they will also be able to secure some time from
few accountants for an in-depth interview. These interviews will supplement and explain the
implications of the survey results.
The researchers can assure you that the information which you will provide will mean no harm
and will serve its purpose in the academe. Rest assured that your personal information will be
held confidential at all times. They respect your privacy and they understand the nature of this
information, hence they will be giving utmost care to safeguard your interests. The researchers
would greatly appreciate your participation in this very significant research. The researchers
also hope that this research would be for the betterment of the accountancy profession.
Researchers,

ARIANNE ABARQUEZ JOSE BERNARDO ARAUNE SEIGRED CAUDOR

CRISCIA GAMIL GRIEMAR LESACA GEORGE SIA

Approved by:

DR. VIRGINIA LOURDES C. YACAPIN, CPA
Thesis Moderator
Dean of the School of Business and Management
Xavier University Ateneo de Cagayan

I commit to answer this survey honestly and seriously.

_________________________
Signature of Respondent

PERSONAL INFORMATION
() Gender: _____Male _____Female
() Age:
_____Young Adulthood (20-40)
_____Middle Adulthood (41-60)
_____Maturity (61 and above)


() Ive been working in the company for:
_____less than a year to 10 years
_____11-20 years
_____21-30 years
() Position:
_____CPA
_____non-CPA

Understanding/Examination of Taxpayers Internal Control
5

-

A
l
w
a
y
s

4

-

M
o
s
t

o
f

t
h
e

t
i
m
e

3

-

S
o
m
e
t
i
m
e
s

2

-

R
a
r
e
l
y

1

-

N
e
v
e
r

The tax examiner inspects and observes the place of business of the taxpayer.
He also does inquiries to achieve this objective.

The tax examiner spends time to understand the nature of the taxpayers line
of business/profession.

The tax examiner takes into account the possibility that there may be
conflicting duties of the personnel/employees of the taxpayer being audited
and how such can affect the integrity of the ITR.

The tax examiner is thorough and complete in internal control examination.
The tax examiner puts into consideration who prepared the financial
statement in the organization, his qualification and level of independence,
and whether he is a CPA or not.

The tax examiner inspects documents and records to evaluate the design of
controls and also as a risk assessment procedure.

Examination Records
Before starting the ITR audit, The ITR auditor requests documents from the
taxpayer through a Letter of authority (LOA) or a Tax verification notice (TVN).

The tax examiner takes into account any conflicting duties on the part of the
personnel of the taxpayer and how this may affect the integrity of the records
being examined.

The tax examiner verifies the validity of the supporting documents for
deductions, exemptions and credits claimed of the taxpayers return.

Regarding the amounts in the books of accounts of the taxpayer, the tax
examiner recalculates them all to check if they are accurate.

The tax examiner inspects supporting documents for significant transactions
during the period, i.e., estimated tax payments, refunds, etc. Document the
items tested.




Application of the Law/Conformance to Standards
5

-

A
l
w
a
y
s

4

-

M
o
s
t

o
f

t
h
e

t
i
m
e

3

-

S
o
m
e
t
i
m
e
s

2

-

R
a
r
e
l
y

1

-

N
e
v
e
r

Before starting the ITR audit, the tax examiner requests documents from the
taxpayer through a Letter of authority (LOA) or a Tax verification notice (TVN).

The tax examiner allows the taxpayer to contest that he paid the right
amount of tax.

The tax examiner makes sure that the taxpayer has complied with the proper
computations for tax as provided by law.

In case of a miscalculation on the part of the taxpayer, the tax examiner does
recalculation and asks for agreement with the taxpayer as to the recalculated
amount.

The tax examiner makes sure that the taxpayer is informed of his right to a tax
credit and other rights if such right is so present.

The tax examiner provides the taxpayer with services that accommodate the
taxpayer and that the services so provided do not oppress any right of the
taxpayer as provided by law.

When there is a deficiency found during the examination, the tax examiner
gives a written notice to the taxpayer for tax adjustment.

When there is a deficiency found, the tax examiner gives the appropriate time
for the additional tax to be paid by the taxpayer.

Taxpayer Relations/Ethical Considerations

The tax examiner is independent and objective in performing ITR audits.
The tax examiner straightforward and honest in performing his duties as an
ITR auditor and with his business relationships.

The tax examiner does his duties as a tax auditor with utmost care and
diligence.

The tax examiner acts in a manner that does not bring discredit or disrepute
to the profession of ITR auditors.

The tax examiner is not affected by gifts or bribes.
The tax examiner is free from anything that may place sympathy (especially
when the taxpayer is a relative or a close friend) to the taxpayer that such
affects his duties as an ITR auditor.

The tax examiner refrains from misusing information acquired or abusing his
position as a tax auditor for his own personal advantage.

The tax examiner does not rely with information that he believes contains
incorrect, incomplete or misleading statements. He always exercises
professional skepticism in himself

The tax examiner respects the rights of the taxpayer when examining his
records.

The tax examiner caters to the needs of the taxpayer he is auditing and that
he is ethical and principle-based as a tax auditor.