Tax Financial Audit Proposal

Tax Financial Audit Proposal

This Tax Financial Audit Proposal is entered into between Auditor/Firm: represented by and Client Name: . Effective Date:

Taxpayer Identification

Individual / Sole Proprietor    C Corp    S Corp    Partnership    Trust / Estate    LLC    Other:

SSN:    EIN:

Scope of Engagement

The auditor will perform a financial audit of the taxpayer's tax-related financial records for the period ending . The objective is to provide reasonable assurance that the tax-related financial statements are free of material misstatement and to identify tax exposures, filing issues, and opportunities for tax reporting improvements.

Procedures and Methodology

The auditor will apply risk-based testing procedures, including but not limited to: inquiry, inspection of records and documents, substantive testing, sampling of transactions, reconciliation of tax accounts, review of tax provisions, and internal control evaluation as it pertains to tax reporting. Workpapers will be prepared documenting procedures, findings, and conclusions.

Client Responsibilities

The client shall provide timely access to all records, personnel, and systems necessary for completion of the audit. The client is responsible for the accuracy and completeness of the information provided. Failure to provide requested documentation may result in additional fees or qualified findings.

Deliverables

Deliverables will include a written audit report with findings and recommendations, a schedule of tax exposures, and workpapers supporting the auditor's conclusions. Drafts will be provided for client review prior to final issuance.

Fees, Expenses and Payment

Fees are based on estimated time and complexity. The client agrees to pay the auditor the estimated professional fee and to reimburse reasonable out-of-pocket expenses incurred in connection with the audit.

Expenses reimbursable by the client include travel, filing fees, reproduction, and courier costs: Client agrees to reimburse reasonable expenses.

Schedule

Anticipated Start Date: . Anticipated Completion Date: .

Limitations, Liability and Confidentiality

The audit is performed to obtain reasonable, not absolute, assurance. The auditor's liability for any claim arising from this engagement shall be limited to the total professional fees paid by the client for the services described herein, except for willful misconduct or gross negligence. The auditor will maintain the confidentiality of client information except as required by law or professional obligations.

Termination

Either party may terminate this engagement upon written notice. The client remains responsible for fees and expenses incurred up to the date of termination and for reasonable costs associated with winding down the engagement.

Certification and Authorization

By signing below, the taxpayer certifies under penalty of perjury and authorizes as follows:

1. All information provided in this proposal and attachments is true, correct, and complete to the best of the taxpayer's knowledge.
2. The taxpayer's tax identification number provided above is accurate and the taxpayer is the person or entity identified herein.
3. The taxpayer authorizes the auditor to access, inspect, and reproduce records reasonably necessary to perform the audit and to disclose audit findings to the taxpayer and those authorized by the taxpayer.
4. The taxpayer understands that this engagement does not constitute tax return preparation or representation before tax authorities unless specifically agreed in writing.
5. The taxpayer acknowledges acceptance of the scope, fees, and terms described in this proposal and agrees to be bound by them upon signature.

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