is the method used to record sales. In the latter case, a schedule of taxable versus non-taxable sales and sales tax inclusions should be available.

Other records may include payroll journals, sales tax

returns, employment tax returns, Form W-2 statements, and Form 1099 statements. Less often there may be inventory records.

SPECIFIC DOCUMENTS

In performing an effective audit, it has been noted

that many documents beside the usual purchase invoices,

canceled checks, etc. are helpful in developing issues.

These documents have been useful in developing

inventory and income adjustments.

1. Estimates: Estimates may be prepared by the auto body shop, the insurance company, or an independent appraisal company hired by the insurance company. Information available will be on an item by item basis. The following may be included on the estimate:

a. Insurance Company - Name, address, and

telephone number of specific office handling

the claim.

b. Date of Estimate - This date may be important

in determining when the vehicle was actually

brought in for inspection.

c. Date of Loss - Date vehicle was in the accident

d. Vehicle description - Vehicle type, model,

year, identification number, license number,

and mileage when brought in.

e. Customer name and whether that person is the

claimant or the insured party. An address and

phone number may also be listed.

f. Part description - Details whether the part

fits on left or right side of vehicle, front or

rear, and the specific name.

g. Part Number assigned by the manufacturer.

h. Suggested retail price of the part.

i. Allowed labor hours to install the part..

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Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Glossary