ForumsLegal and Insurance

Wow - this audit was interesting. Unless your accountant has all of your receipts, bank statements, canceled checks, corporate charter and contractual agreements, I don't see how this audit can be done at the accountant's office. I thought this was going to be easy, because I am a small consulting firm with one employee - me. But just a heads up - this auditor asked me about EVERY transaction in 2008 where I paid an individual as opposed to a business name, trying to find "pseudo employees" that I did not report to the TWC as employees. I have none. She even went as far as to say that the 45.00 I paid a high school student to do some data entry should have been reported as an employee. She asked for items not on the list such as receipts, rental property agreements, bank statements, and my corporate taxes. She went through every transaction on my bank statements. She looked at every paycheck detail stub. I have a very small company and this audit lasted over 2 1/2 hours. Good luck.