ATO REVIEWS VS. AUDITS: SCOPE AND PROCESS

Course overview:
Accounting and tax practitioners often struggle to distinguish between Australian Taxation Office (ATO) compliance reviews and full audits, which can lead to misjudging risks and missing procedural opportunities. This course demystifies the practical differences in scope, powers, evidence requirements, and escalation pathways between ATO reviews and audits. Through scenarios and case studies, participants will learn how to respond strategically at each stage – knowing when to cooperate, when to push back, and how to manage client expectations – all to minimise disruption while protecting the client’s position early in the process.

Course objectives:
– Understand the key differences in scope and depth between an ATO risk review and an ATO audit.
– Identify the information-gathering powers available to the ATO and how they are applied in reviews vs audits.
– Learn best-practice strategies for responding at each stage, including effective cooperation and appropriate challenge (pushback).
– Recognise how to manage client expectations and compliance obligations during ATO interactions.
– Apply relevant professional standards and guidelines (e.g. TPB Code of Conduct, Taxpayer Charter) to real-life scenarios involving ATO reviews and audits.

Learning Outcomes:
By the end of this course, participants will be able to:
– Distinguish an ATO review from an audit in terms of purpose, scope, and typical process.
– Explain the ATO’s compliance approach and how risk ratings influence whether a review escalates to an audit.
– Advise clients on their rights, obligations, and best responses during ATO reviews and audits, in line with professional codes and ATO guidelines.
– Implement strategies to effectively cooperate with ATO requests or push back when requests are unreasonable, without obstructing the law.
– Manage the outcomes of audits (including disputes, settlements, or appeals) while minimising business disruption and adhering to ethical standards.