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FIRS evolves new audit mechanism for revenue collection

By Businessnews Staff on September 12, 2014

The acting Executive Chairman, Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi yesterday said audit tools and techniques had been introduced to increase tax revenue collection across its field offices in the country.

He said a framework and template had already been developed to help monitor audit activities and assignments in its drive for increase tax revenue collection as well as boost expansion of the nation’s revenue base.
Speaking in Abuja during a one-day interactive session for Heads of Audit and supervisors across the country, Mashi said the intention of his agency was to extend the new audit techniques currently being deployed through the Capacity Enhancement Programme (CEP) at the Large Tax Offices to all other offices across the country in order to complement the audit model contained in its Integrated Tax Administration System (ITAS).

He added: “Our plan also includes intensifying our monitoring of audit activities and to this end; we have developed a monitoring framework and template for your tax audit assignments. This would easily check and determine compliance level, check your risk profiling systems, your audit time reporting system and the targets against actual collections at the various levels.”

Mashi also stressed the need for adherence to high ethical standards including internal policies, general audit guides, proper supervision, display of high moral and ethical conducts.

He pledged that the FIRS Management would continue to provide participants and field offices with the needed support in the areas of capacity development, funding as well as latest audit tools.
He said: “It will interest you to note that one of the areas identified by the global firm of consultants, McKinsey and Co, during their 2012 to 2013 diagnostics was audit.

“The appropriateness of audit standards and checklists, deficiencies in case selection and prioritisation, and the low level capacity were among the isolated issues.

“These shortcomings have been largely addressed by the management and we are willing to do more.”

Also, Coordinating Director, Field Operations Group (FOG), Mr. Ajayi Bamidele also noted that tax auditors must see themselves as ambassadors of service, adding that tax auditing remained a strong instrument for enforcing tax compliance that must be carried with a high degree of professionalism in order to achieve the desired results.
According to him, “Because of their regular direct contact with senior officials of private and public entities, it is important that tax auditors re-orient themselves and familiarise themselves with the core values of the Services as a guiding principle in the conduct of their work.”

[This Day]

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