Multistate Audit Best Audit Practices - California Franchise Tax Board

MULTISTATE AUDIT BEST AUDIT PRACTICES
EXHIBIT C
EXAMPLE OF TEAM AUDIT PLAN
5. START TIME & ESTIMATED COMPLETION DATE:
6. TIME FRAMES:
Date of Initial Contact (Field Appointment): 12/15/01
Estimated completion date: 9/15/03
Normally response times to IDRs, AIPS, or other similar correspondence is a maximum
of 30 days from date of delivery. Requests for extensions of time should be based on the
applicable facts and circumstances keeping in mind the benchmarks that must be reached
in order to timely complete the audit. Dates to respond to an IDR will be reasonable, but
it should be understood that responses must be timely in order to complete the case
within the two-year expectation set forth in the Audit Regulation.
Maximum response times for audit staff regarding information received from a taxpayer
is 30 days or less from the date of receipt.
7. PRELIMINARY DOCUMENTS NECESSARY:
The preliminary documents necessary to support the returns of XYZ Corporation &
Subsidiaries for each I/Y 1998, 1999, and 2000 are as follows:
• Federal 1120 returns, including supporting documentation.
• SEC 10K Reports.
• Intrastate apportionment work papers, records or documentation to
substantiate the amounts reported in the numerators of California property,
payroll and sales.
• Work papers in preparation of the California water's edge return.
In addition to the above, the taxpayer should make the following records available for
review to the Audit Team during a scheduled field visit:
• Corporate Directors Minutes of XYZ Corporation
• A copy of the water's edge contract
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