Internal Revenue Service Could Make Better Use of Computer Audit Specialists

The Internal Revenue Service's (IRS) computer assisted audit program was surveyed to evaluate the management direction and control of the program and to assess whether it effectively assists the IRS in auditing returns of taxpayers using automated accounting systems. The survey was performed at the National Office in Washington, D.C., and at regional and selected district offices. National and regional policies and procedures for carrying out the computer assisted program were reviewed. When the program began, a selected number of revenue agents were trained in computer systems design and programming. These computer audit specialists were tasked with analyzing and evaluating taxpayers' automated accounting systems and initiating agreements with them to retain financial records on magnetic tape for IRS audit. The computer audit specialists also assist in the audit effort by performing computerized data analysis and retrieval as requested by case managers and examining agents.