Sole Trader Vat Audit - Another Question

Hi;

When a vat auditor makes an appointment to auditor a sole trader for a particular year, 2005 for example, can they also look into preceeding years during their visit or would they make another appointment for periods outside the requested audit period ?
Would it be good practice to prepare preceeding years incase or what is best way to handle this ?
Thanks in advance.

Generally, Revenue do not reopen earlier years unless there is a material irregularity. But they have the ability to do so and may do so at the time they are looking at the selected period
Have you not done VAT returns for 2004 back? I dont get your question!

No, all returns over last few years have been submitted, its just there is an element of work involved in preparing for an audit & where do you stop. People have told me that the auditor needs to schedule another appointment if they are interested in preceeding years & you are intitled to some time to prepare. I would probably just let them see all records if asked for but just throwing the querstion out to hear peoples experiences.

Would be interesting in any advice on how to conduct such a meeting, I have heard varying stories of ; leave them alone in the room with the files / stay in room & talk them through the files / dont say anything & let them ask all questions etc etc ..........

The auditor does not have to schedule another time to audit the preceeding year. Its all part of the one audit. If the auditor asks for preceeding years information tell him/her that it is in storage and you will have to root it out. He/she wouldn't expect you to have it there and then. it may slow up the whole audit but better safe than sorry. It will give you time to have a look through your previous years file.

But, If there is something not exactly done right in the previous year and there is something that could lead to them finding it in this year's accounts you may need to disclose it at the beginning of the audit. You dont get a second chance.

Good luck with it anyhow.

if they are doing an audit for a particular year, that is the only year they will audit, unless something comes to light that will make him investigate previous years. just be yourself, and be as helpful as you can.

About the actual meeting itself.

I think you are better off letting it take place in your accountants premises.
all questions are then generated to them. they have handled plenty of these meetings and contrary to everyones belief they want as good a result as you and know how to approach these meetings.

If you are letting them in your premises I wouldn't walk them through any file. Let them do all the looking up.

About the actual meeting itself.

I think you are better off letting it take place in your accountants premises.
all questions are then generated to them. they have handled plenty of these meetings and contrary to everyones belief they want as good a result as you and know how to approach these meetings.

If you are letting them in your premises I wouldn't walk them through any file. Let them do all the looking up.

Given the conflicting views you are hearing from people and the seriousness of a VAT audit I would seriously recommend the book "Revenue audit code of practice 2002" available from the Irish Taxation Institute for €20


This book is excellent and should answer all your questions as it is based on Revenue own new code of practice as introduced in 2002.

Even though I have experience of Revenue audit I would not be happy giving you an answer over AAM

hope this helps you