Tax Provision
Throughout Clifton Douglas’ eight years of preparing tax provisions, no filing deadlines have been missed, no deficiencies have occurred, and the overall interaction with the auditors has been smooth. Such results were obtained by Clifton Douglas’ implementation of the following tax services, which we do not believe are offered by most tax service providers:
- Audit-centric Tax Provision Model: A smooth tax provision audit begins with well-organized and easily navigated workpapers that reduce auditor/internal review time. Our model includes a number of features that reduce review time, such as the following: a table of contents, executive summary discussing approach and methodology, detailed procedure checklist, diagnostics schedule showing analytical comparisons of anticipated numerical relationships, charts and tables comparing key figures from current and prior periods, proofs and reconciliations, consistent referencing system, and detailed preparer’s notes and reviewers conclusions.
- Auditor Collaboration: Although many tax service providers insist they are collaborative with a company’s audit firm, it is difficult to understand how this is possible when the two are typically competitors. Clifton Douglas only performs those tax services that the audit firm cannot perform or prefers not to perform due to cost constraints, thereby preserving such collaboration.
- Audit Communication: Communication with the client and audit team is consistent throughout the financial reporting period starting with a management planning meeting, to an audit kickoff meeting focused on key issues impacting the period, to ongoing collaboration during the tax provision preparation process, and to final review of the reporting package and internal control signoff.
