The income tax team performed testing of the tax account rollforward and documented the following for testing of the income tax payments for the
current year, “Agreed balance to Tax payments/refunds schedule prepared by the client without exception.” Which is the best response as a result
of your review?
A. You consider the source of the payments/refunds schedule noting it comes from a key system and ITGCs were deemed to be effective and add this fact to the tax team’s documentation.
B. Additional procedures are not necessary. The tax manager has already reviewed the testing and the appropriate tie-out procedures were performed.
C. You consider the testing over the accuracy and completeness of management’s schedule which has been performed in a separate EGA, ensure the balance in the rollforward agrees to the testing performed, and enhance the tax team’s documentation to reference the additional testing.
D. As part of your review of the tax team’s work, you re-perform their procedures by agreeing the balance to the payments/refunds schedule obtained from the client.
