Question

Which of the following terms best describes the audit of a taxpayer's tax return by an...

Which of the following terms best describes the audit of a taxpayer's tax return by an IRS auditor?

A

Operational audit.

B

Compliance audit.

C

Government audit.

D

Internal audit.

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Answer #1

The audit of a taxpayer's tax return by an IRS auditor is to ensure whether the tax return is prepared in compliance of applicable tax laws and regulations. Hence, such audit is known as Compliance Audit.

Answer: B  

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