It’s always a tough time for those clients who are faced with investigations and tax audits by local governing bodies or even income tax bodies looking for perpetrators. However, if those clients know they are on the right side of the law, they have nothing to fear except horrendously large sums that may be incurred by their accountancy firms as professional fees due to audit activity. These sums mainly arise due to correspondence and transfer of legal documents between the accounting firms and the agencies. In order to minimize these costs it is beneficial for a client to avail the services offered by an audit insurance company that provide assistance in these matters. In particular these companies generally take care of the fees and correspondence between accounting firms and the local governing bodies. Also, firms that make use of these insurance companies are seen to be more proactive in the eyes of the client, as this ensures that the firms are not wasting valuable client time in the procurement of documents and the payment of fees.
There are a few easy steps for a client to enjoy these benefits. They are listed below:
- First, the appropriate scheme for audit insurance is offered to the client as part of the accounting firm’s fees.
- Next, based on the level of insurance that the client would prefer, the necessary offering is chosen.
- Finally, the accounting firm then establishes a contract with the audit insurance company to help with the professional fees and other related services. It must be noted that the terms and conditions of the audit insurance will be made as a mirror of the accounting firm’s insurance terms and conditions.
Moreover, it is beneficial to note that the audit insurance companies also cover the fees associated with various types of enquiries, including but not limited to tax audit enquiries, personal tax filings, audits for businesses, mostly due before the end of the financial year and filings of the GST or HST. With the three steps outlined above, it will truly become easier for clients and firms alike to focus more on the problems at hand than on the secondary requirements such as the professional fees and procurement of documents.