This sample questionnaire can be used to assess the internal controls related to a company’s tax compliance process. It focuses on deferred taxes, income tax, tax footnotes and property taxes.
Sample questions include: Who determines/calculates the deferred taxes recorded? Who is authorized to approve journal entries? Are recorded balances periodically evaluated to determine the probability of realization and the valuation allowance? What supporting documentation is gathered to substantiate calculations/tax returns? Who is authorized to make payments for the income taxes due? Who approves the payment of income taxes?