STATE AUDIT DEFENSE
At ThreeFive, our integrity is what matters most. When we finish a review, no amount will be left unclaimed.
Opportunity: Sales and use audit activity is on the increase as states are looking for greater revenues. Often corporate accounting staff is too understaffed and unprepared to handle an audit, including the audit sample selection and the audit defense. ThreeFive has over 80 people years of State DOR – sales and use and reverse audits and has successfully performed numerous audit defenses.
Implementation: ThreeFive will work directly with the Client in order to guide them and the auditor toward a fair and representative audit sample. Often clients are confident in their sales and use tax compliance within certain accounts but have confusion in other areas. In addition, we will assist in pulling and or copying invoices, if so required by the auditor. This can result in a very large savings of corporate staff time.
Once the preliminary audit findings are presented by the State, ThreeFive will consider the statutory laws as they apply towards the Client’s business activities. ThreeFive will then prepare understandable audit schedules in defense of the preliminary liability presented by the State.
Result: Typically our clients receive a final audit report from the State that is significantly less than the preliminary audit findings. Our billing is based on the savings resulting from the preliminary State audit schedules to the final State audit report.