We Audit Sole Proprietors to Fortune 100 Companies
Washington
1. What types of audits does the DOR do? (such as in state, out of state, corporation, individual, large companies, small companies or a mix of these)
The Washington State Department of Revenue only audits business, since we do not have an income tax in Washington. We have 289 employees in the Audit division. In our core auditing function we have 17 in state managers who supervise 188 auditors and 5 out of state managers who supervise 42 auditors and 10 contract auditors. Our headquarters functions include a tax discovery/research unit (9), audit program support unit (6); Computer Assisted Audit Program unit (6) and a review/quality control unit (11).
We audit sole proprietors to fortune 100 companies.
2. What level auditors do you have and typically how many of each? (Managers, senior auditors, staff auditors)
Managers: 32
Senior Auditor: 83 (37 of these are based out of state)
Staff Auditors: 148
Our typical in-state audit staff has one manager, 2 senior auditors and 9 staff auditors
Our typical out-of-state audit staff has one manager, 7 senior auditors and 1 staff auditor and 2 contractors
3. Can you please explain the audit assignment process (is it performance based or seniority based, do the auditors have a say in which audit they get, does it differ for in state and out of state audits)?
Accounts are either assigned from headquarters or selected by the manager. Audits are then assigned by the manager, based on the ability of the auditor. The auditor could ask for an audit in a specific industry but not a specific taxpayer. This process ensures that all auditors get a chance to develop and gain experience with all types of business.
4. Are the auditors and managers happy with the current assignment process in place?
Yes
5. Do the auditors specialize in specific areas and types of businesses or do they work all over?
Our auditors are generalist but some do specialize in specific industries due to the complex nature of the accounts.
6. What is the typical in state and out of state travel time per year per agent?
An in state auditor typically has minimal travel with the exception of those based in the eastern part of Washington
An out of state auditor has a significant amount of travel. These auditors are based in cities across the US and can cover a large area.
7. Can you please explain your performance review system?
Goals are set at the beginning of the year and the auditor is kept up to date on there progress on a monthly basis. Each auditor is reviewed every year as to the number and quality of audits completed with weight being given to those auditors who undertake very large and complex audits. Most of our employees are also conducting other non-audit tasks, such as speaking engagements and other educational efforts. All employees are also evaluated on their conduct and general performance as a state employee.
8. Do you feel the performance review system is effective and is it being followed?
Auditors are aware of their performance expectations and thus know what they have to achieve. Management has placed a high priority on completing 100% of all employees’ evaluations each year.
9. What types of incentives do you give agents to perform at their highest level?
We do not have an incentive program.
10. What benefits do you offer when recruiting new agents such as a set pay scale or promotion and other benefits to stay competitive with public accounting firms?
We hire most of our auditors as a Revenue Auditor 1. After two years they can promote to a Revenue Auditor 2 based on passing an exam and their performance.
11. What type of training do you offer (on the job, in a class room, additional training every year)?
When an auditor is hired they are given 3 weeks of tax law and computer training, followed by on the job training and other formal classroom training throughout their career. After that they have a training plan that explains what training is required and within what timeframe. The training plan was created so that auditors would know what training is necessary for them to advance in the auditor series.