Tax Audit - Auto Body & Repair Industry Edition Ebook

TABLE OF CONTENTS

CHAPTER 1: THE NATURE OF AUTO/BODY REPAIR INDUSTRY

• Repair/Replacement 1-2
• Paint Process 1-2
• Overview 1-1
• Other Processes 1-3
• Estimation Process 1-3
• Differences Between Body and Repair Shops 1-4
• Description of Auto Body Repair Process 1-2

• The Mitchell Guide 2-5
• Specific Documents 2-2
• Organization of Records 2-5
• General Books and Records 2-1

• Tour of Business 3-4
• Initial Interview 3-1

• Treasury Stock 4-4
• Schedule M-1
• Review 4-5
• Other Receivables 4-4
• Liabilities and Shareholder's Equity 4-4
• Inventories 4-3
• Introduction 4-1
• Comparative Review 4-1
• Cash Account 4-2
• Buildings and Other Depreciable Assets 4-3

• Waived Deductibles 5-14
• Vehicle Sales 5-5
• Towing 5-4
• Sublet 5-4
• Sublease of Premises and Equipment 5-6
• Storage 5-5
• Sales Tax Audits 5-8
• Sales Tax 5-5
• Repair Orders 5-12
• Rebates and Refunds of Expense 5-6
• Other Sources 5-7
• Other Income Sources 5-6
• Other Income Issues 5-14
• Old Checks 5-6
• Labor 5-4
• Journal Entries 5-17
• Indications of Underreporting 5-9
• Held Checks 5-14
• Estimating Sales 5-9
• Estimate Fees 5-5
• Checks to Check Cashers 5-13
• Categories of Charges 5-4
• Cashed Checks 5-15
• Cash Transactions Records 5-13
• Cash Payments 5-15
• Breakdowns of Sales and Costs 5-13
• Bank Deposits 5-10
• Advertising Space 5-6
• Accounting for Sales Taxes 5-7

• Sublet Expenses 6-7
• Records to Request/Examine 6-2
• Records to Examine/Request 6-9
• Purchases 6-1
• Paint and Supplies Inventory 6-13
• Paint Labor 6-4
• Minor Mechanical Repairs 6-5
• Metal Labor 6-4
• Labor: Records to Request/Examine 6-5
• Labor 6-4
• Inventory Requirements 6-8
• Inventory Listed on Return 6-13
• Inventory 6-7
• Frame Labor 6-4
• Change in Accounting Method 6-14
• Audit Procedures 6-9
• Audit Procedures 6-5

• Vehicle Owned by Shareholder 7-2
• Vehicle Owned by Corporation 7-2
• Uniforms 7-14
• Unethical Practices 7-15
• Towing Service Payments 7-17
• Smog Certificate Sales 7-18
• Rent Expense 7-4
• Reasonable Compensation 7-9
• Real Property 7-5
• Prepaid and Accruals 7-6
• Political Contributions and Lobbying Costs 7-16
• Personal Property 7-6
• Personal Expenses 7-4
• Officer Compensation 7-9
• Misclassified Business Meals 7-4
• Medical Insurance 7-7
• Loan Accounts and Related Interest Expense 7-11
• Life Insurance 7-8
• Lien Sale Filings 7-16
• Leased Vehicles 7-3
• Journal Entries 7-10
• Insurance Fraud 7-18
• Insurance 7-6
• Inadequate Verification 7-3
• Imputed Interest 7-12
• Group Plans 7-15
• Gifts 7-4
• Finders or Referral Fees 7-16
• Expenses Reimbursements 7-15
• Expense Allowances 7-4
• Entertainment and Promotion 7-3
• Employee Related Expenses 7-14
• Employee Advances 7-14
• Dividends, Refunds and Claims 7-7
• Bonuses and Gifts 7-15
• Bonuses 7-10
• Automobile Rental Kickbacks 7-15
• Automobile Expense 7-1
• Auto Insurance 7-8
• Accruals 7-11