Audit Insurance

Tue 11th Dec, 2012

Audit Insurance pays for accountant fees incurred to manage a State & Commonwealth Government Agency "Compliance" audit.

Other Professional fees are also included, such as obtaining a legal opinion.

Not covered are additional taxes, duties, premiums or superannuation contributions imposed.

Those parties who periodically lodge "returns or declarations" with State & Commonwealth Government Agencies who conduct "compliance" audits.

Who are these agencies?

State & Commonwealth Government Agencies are those that oversee taxes, duties, superannuation & workers compensation. Examples include payroll tax, stamp duty, workers compensation, gaming, income tax, goods & services tax, fringe benefits tax, capital gains tax, superannuation funds & contributions, customs, etc.

Why would they pick me?

You may be selected for an audit of a previously lodged 'return or declaration' or be subjected to a 'compliance audit' for any number of reasons:

When an audit occurs, it's best to engage your accountancy firm because accurate preparation is critical. If any errors or omissions are found & reported to the government agency before they commence their audit, potential fines or penalties can be avoided or significantly reduced.

Accountant's fees can be substantial, depending on the nature & complexity of the audit. This can be a challenge in times of tight cash flow. But there's no need to carry the risk as Audit Insurance is an economic "comfort" buy.

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