Accountants fees if Audited

Following a previous thread by Brenda, just wondering if you are audited, what sort of costs are you up for from your Accountant?

I ask this, as my accountant has sent recently sent me an Audit Protection Service insurance policy.

My paper work is a bit slack at the moment - but I have lots and lots of it. Who goes through it - the ATO or my Accountant?

I was actually going to pay this account this morning, but thought I would ask this question first?

Sunshine
 
I get advertising literature from these audit protection guys, but I don't like it. The audit insurance guys pay a commission to your accountant for selling you the premium, and if the audit commences, the accountant's fees are paid by the insurer, making it a win-win situation... for the accountant.

I would probably ask the accountant what types of audit he covers with his preparation fee. For example, if you screw up the interest on the tax return and get an income discrepancy schedule, are you going to be charged for that? If the accountant gets a request to have a look at your invoice receipts for repairs, do they charge for that? If the accountant messed up the claims on your return and you get audited, does he/she do it for free?

Some firms are even brave enough to say that they cover audit expenses up to auditor visits or court appearances.
 
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