Replies to post #3055 on Clean Vision Corp (CLNV)

[old man river]

An audit by a CPA will only confirm past financial results reported by management. If management has made a material misstatement or incorrectly applied GAAP then it will appear in the report to management (never released to shareholders) or as a qualified audit report.

As for the IRS, every tax return runs through an automated process to look at tax returns that have some outlying numbers. This comparison is done to people or firms in the same location or industry. Some people even call this an audit.

Now, if the automated process produces an outlying response then a desk review is performed. This too can be called an audit. If after the review a there is some doubt as to the numbers the IRS may ask in writing for some documentation to substantiate the claims in their review. This is what could be termed as a desk audit. If the documents do not support the numbers the IRS could restate the financial numbers and tax accordingly.

There is an option for the IRS to come into the office for a chat. This is about the only time where a taxpayer should really use the word audit.

Now, the IRS will not spend much time even doing a desk audit as the financial results show a loss.

We should avoid placing a higher ascribed value on the shareholders audit or an IRS review than what is actually there.