Q - Audit Insurance? Worthwhile or Rip-off?

[redwing]

Thanks Babushka those earlier links were interesting

Thanks also to CoastyMike & Pat for the responses from an accountants perspective

I'm guessing as per Dale's earlier posts, anything in respect to Part IVA would make the policy nul and void, which would be where most people at risk (real or perceived) would want to be covered anyhow

 

[redwing]

That time of year again, just received an audit insurance request, the accounting firm holds a policy, but that only covers them and not us, however they can add us and other clients upon participation

 

[babushka]

I don't understand why we have to pay insurance to protect the accountants, while they should have their own professional indemnity!

 

[redwing]

What's the process with an audit?

The Accounting firm gets a please explain letter, or the individual receives the letter as the first step

Second step possibly being an invitation to visit the local ATO office or meet with an auditor?

 

[Shaneelastic]

What's the process with an audit?

The Accounting firm gets a please explain letter, or the individual receives the letter as the first step

Second step possibly being an invitation to visit the local ATO office or meet with an auditor?

my opinion is this.

the the accounting firm is at fault to get the audit, they do the job pro bono for the audit

if its clear that it was a client error or the audit the client pays for the accountanst time to prepare

if its just the tax office doing say a particular industry then i think out of client relationships the cost of the accountant to prepare work would should be somewhat discounted

i wouldnt purchase this audit insurance