Computer assisted verification

We use computer assisted verification (CAV) techniques to assist you during an audit. This involves using specialised software to analyse electronic information that we ask you to provide.

The benefits of using CAV during an audit include:

• reduced time preparing information we request
• fewer requests for additional or supporting information
• a more efficient and thorough review when compared to manual checking.

Security

We will not operate or seek direct access to your computer software or systems. You only need to provide us with the information we require in an agreed way and format.

The information you provide to us will be stored securely along with other documents and records relating to the audit. We are bound by the Taxation Administration Act 1996 and NSW privacy laws to ensure the confidentiality and security of your information.

How it works

You can request that we use CAV techniques at any stage during an audit. We may also suggest the use of CAV wherever this could assist with an audit.

We have a dedicated team of officers who are skilled in the use of CAV software and techniques. Depending on the type of information and where it is stored, one of our CAV officers will either:

• attend your business premises to examine the software/system and discuss options
• review the information you supply to us via email or another way as agreed.

We recommend you involve your information technology specialist and accountant in the process, especially where an on-site visit is required. We also recommend you keep a copy of all information you provide to us.

Types of information

We find our CAV techniques are useful where:

• you have a large amount of information to provide
• the information is not kept in the format we need
• the data is difficult to extract from your computer software/system.

We commonly use CAV techniques to analyse the following types of information:

Contractor payments

Payments details (name, ABN and amount paid) to contractors to assist with substantiating exemptions claimed.

Apprentice and trainee details

Details of apprentices and trainees (name, date of birth, course details) to assist with validating payroll tax rebates claimed.

Complex and semi-structured data

Data that is difficult to extract in the format we request or is only partly structured can be organised in a way to assist with our analysis.

Multiple sources of information

Information contained in more than one source can be consolidated (for example, where a payroll system has been changed part-way during a financial year).

Scanned documents

Documents that have been scanned can be converted into a searchable format.