Work properly planned achieves good results.
In order to avoid any situation where the Revenue Officer will be faced with a situation of a cramped audit workload and schedule, he should prioritize the audit of the assigned cases in the following manner:
- Returns or cases where the statute of limitations is about to prescribe should be given first priority. Prescriptive period is three (3) years counted from the date prescribed by law for the filing of the return, provided that in case a return is filed beyond the prescribed period, the three-year period shall be counted from the day the return was filed.
- Claims for refund should be given the next priority in order to develop good BIR-taxpayer relationship.
- Cases assigned for reinvestigation should also be given priority attention.
- Returns which would be more productive in terms of revenues should be given precedence over the less productive ones.
In work planning, an Audit Program should be prepared for each and every case. An Audit Program is a checklist of the various auditing procedures to be undertaken and the various books of accounts, records, documents and business forms to be verified in order to assess the correct tax due from a taxpayer. This checklist would serve as a guide for the Revenue Officer to conduct a “quality audit” within the time frame allowed to conclude a tax audit. It is also a tool of the tax administrators to check on the progress of the tax audit and for proper evaluation of the performance of the Revenue Officer.
Reference: RAMO 1-2000