Tax Agent travel to businesses to analyze and check financial processes and documents to see whether they comply with the tax laws. They are the ones who determine whether a business is complying with tax regulations, calculations, and compiling a report for the financial managers. Some of the key services of a Tax Agent includes:

    • Statutory Audits of Financial Statements
    • Special Purpose Audit
    • Agreed upon Procedures
    • Review Audit
    • Internal Control and System Reviews

In this article, we’ll be sharing about the 3 important characteristics of a reliable tax agent. Before we go there, let us share the differences between the tax audits and the statutory audits first. Many people tend to get confused between tax audits and statutory audits. Well, statutory audits are compulsory audits for all companies. Whereas for tax audits, it is a conditional audit conducted under tax regulations.

What exactly is a tax audit? A tax audit is when the auditors (IRAS) check your tax return information to make sure that all data reported is correct. However, you do not need to worry about tax audits. Your chances of getting an audit is super rare. These audits are randomly performed by the Inland Revenue Authority of Singapore (IRAS). The IRAS is least likely to audit companies that have no filing mistakes, meaning that companies on due diligence about their work ethics and paperwork have nothing to worry about.

There are many requirements and qualifications if you wish to be a tax auditor. For example, you have to have a complete knowledge of the tax principles, rules and regulations, you also have to have a degree in accountancy, must be familiar with the different system of accountancy, the techniques of auditing and many more. Even though the professional qualities required for auditors vary in nature, it is crucial for them to have that knowledge in order to perform the audit work successfully. 

Some characteristic traits a reliable tax auditor should possess are:

1. Professionality and integrity 

Being an auditor requires you to analyse and advise businesses objectively. However, there may be some disagreements between auditors and business owners at times. Having to be a professional, auditors have to show integrity to be able to come up with smart solutions to problems that arise. Being an auditor means you are providing comprehensive assurance advisory services to businesses. So, you have to have the confidence to give comments on businesses as your job scope is to give opinions on matters.

2. Electronically smart – good with using technology

Professional auditors who have good knowledge on the latest technology tend to do better on the job. They are more reliant in providing you with good advice and assurance when it comes to technological risks to any businesses. For example, failures in the system or cybersecurity. Not only that, they can also identify weaknesses in processing data. Being tech savvy helps an auditor be more efficient.

3. Good communication skills and public relation skills

Having good communications skills has been a needed characteristic in recent times. With good communication, there will be better well written reports and verbal dialogues within a business. Internal auditors have to be clearly expressive in every aspect of their work. This is to ensure that business owners understand the auditors consultation and listen to their advice. Having good public relation skills is an essential for working a job that requires communication with other people. 

Overall, there are many different types of auditing like statutory auditing and internal auditing. Auditing is important as it helps provide reliability and gives shareholders confidence that everything that is being done is honest and fair. It is mostly to ensure that the financial information of a business is being presented accurately and is following the rules and regulations. 

Lastly, if you need help with your yearly financial statements, do drop us an email or visit our website to find out more: https://www.entrust.sg/services/audit-assurance/.

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