Main Tax Audit Procedures

  • Verify the roll forward of the opening balances in the tax computations, including deferred tax
  • Compare the previous year tax computation to the filing position
  • Detailed review of the taxation calculations, income tax rate reconciliations and deferred tax using the trial balance and supporting schedules where detailed schedules are furnished for the Group and subsidiaries where statutory sign- off is required
  • Audit the tax reporting packs that are used for the consolidated tax computation for significant business entities in a group environment
  • Assess the integrity of adjustments made and ensure that the correct tax principles are applied in the determination of the taxable income or loss at the end of the period
  • Consider whether the principles adopted are in accordance with the relevant tax laws, practice notes and case law
  • Review of the material amounts that will affect the assessed loss in the Company and Group and consider the impact on the amounts that will be disclosed in the annual financial statements as the unrecognised deferred tax asset
  • Analyse the deferred tax on the comprehensive method as required in terms of the International Financial Reporting Standards and IAS12
  • Review the income tax and deferred tax disclosure and notes in the annual financial statements
  • Review of the royalty tax calculation for reasonableness and consistency with the relevant legislation of the country imposing tax
  • Re-perform the computation of royalty tax paid or payable and compare to amount recorded
  • Discuss any issues / findings noted on the tax computation with management and SizweNtsalubaGobodo audit team
  • Review of the Group consolidation of current and deferred tax