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Seven income statements you must check when preparing for a SARS audit

by , 25 August 2014
When it comes to audits, SARS turns into a know-it-all who wants to put its nose into every single one of your records. If anything is missing or there's something out of place, it could land you a 200% penalty.

Among the records SARS wants to nose around in, are your income statement or statement of comprehensive income. Because these are something you work with constantly, it's easy to misplace something.

That's why you should use this checklist to ensure you have all the right records in place before the auditor even arrives...

 
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Use this checklist to ensure you have all the right income statement records

 
 
When you prepare for your audit, ensure you have:
 
Your 'Schedule of Sales' and 'Cost of Sales' per month for the year under review, including your calculation of Gross Profit Percentage You should have an electronic version of this so you can supply it electronically.
 
Schedule detailing the main categories of repairs and maintenance.
 
Schedule of legal fees, detailing what you paid these legal costs for, such as recovery of debts, lease agreements, formation costs.
 
Schedule of any donations your company made with the supporting documentation.
 
Schedule detailing the main categories of your company's insurance expenditure that it incurred.
 
Schedule detailing the main categories of the interest your company received.
 
Schedule detailing the travel expenses your company paid for. You should split these between local and abroad. Ensure you include information such as:
 
- The destination;
- The person who travelled for business and his position in the company;
- Reason for travel;
- Dates of travel; and
- Expense amount.
 
If you check you have all of these documents up-to-date, ready and waiting, that SARS auditor will have a hard time finding any problems with them.
 

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