interested and professional manner. The taxpayer is likely to be more responsive in the early stages of the examination and can provide information that would be difficult to extract later.

 

It is not, of course, possible to anticipate all the questions that will arise later in the course of an examination, and follow up questions will be needed and should be submitted promptly as they arise.

 

Questions about the accounting records should be directed to the bookkeeper, controller, secretary, or accountant unless the principals are involved directly in the record keeping. Until it is understood how the books are organized and maintained, it does no good to proceed with the rest of the examination. It is important to know exactly how the records are kept and become familiar with any unfamiliar notations used by the taxpayer. This is particularly true of computer maintained records that may use many different sets of reference codes.

 

Some questions to incorporate into your auto body/repair interview follow below. The listing includes only items relating to the repair process, sales, and officer/shareholder duties. Questions about the business history, accounting methods, internal controls, and mandatory items should, of course, be added.

 

1.   When are initial estimates made? Is any charge
made for them?

2.   After the initial estimate is made, how are contacts made with the insurance company?

3.   Does the estimate vary with the final bill?

4.   Are repair orders used in sequential order?

5.   When are the repair orders dated? (when written, authorized by customer, etc.)

6.   What happens if a repair order is voided? Is it thrown away or retained? How many are voided?

7.   Do some repair orders require supplements? Is a new repair order written for the supplement? When will the supplement be paid for? Is the vehicle released prior to the receipt of the supplement? When will the supplement be recognized as income?

8.   When are parts ordered for a repair job?

 

 

 

 

 

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