Validation

Under validation for the purposes of tax audit verification is generally accounts of the taxpayer understood with the aid of suitable computing and thought patterns.

When the verification methods are used, the data from corporate accounting is compared with other information that is known or considered to be correct, and the results of this comparison are interpreted. Cumulative sizes are always compared. Verifications are therefore always general checks of a set of business transactions . An attempt is made in this way, the accuracy of certain records and thus the plausibility and regularity to check the entire accounting.

The more independent the benchmarks are from the figures in the bookkeeping, the greater the significance of the validation method. In this regard, a distinction can be made between computational and economic testing methods. Most arithmetic checks are carried out exclusively with bookkeeping data, which means that incorrect bookings can be detected, but not facts that are not reflected in bookings. In the economic testing methods, the functional relationships between operational use of goods and operational performance are used. These relationships allow the use of accounting-independent figures that are logically related to the accounting. In this way discrepancies between the data in the bookkeeping and the actual operational events can be revealed. In principle, all testing methods serve to discover possible sources of error, which may then have to be subjected to a more detailed examination.

literature

• Tipke / Kruse, AO / FGO, § 158 AO No. 17ff.