Case Study On Optimization Of Internal Control Of The Inspection Risk Of N Tax Inspection Bureau

The former national and local Tax Inspection Bureaus of the N City tax system were optimized,merged,and divided into one municipal Inspection Bureaus and three inter-regional Inspection Bureaus in 2018,following the reform of the national and local tax collection and management systems.As a result of the computerization and concealment of illegal taxation methods,the issue of the enforcement risk of tax inspection has become more prominent.In 2009,the State Administration of Taxation introduced the general framework of internal control into the internal management system and promoted the construction of internal control of taxation authorities at all levels nationwide,which has contributed to the prevention and control of administrative risks,integrity risks,and law enforcement risks of taxation authorities at all levels.Nonetheless,the application of internal control in the risk of tax inspection is still relatively small,mostly limited to the completion of prescribed actions,and the role of internal control is unclear.Much domestic and international literature demonstrates that internal control positively affects publicly traded companies’ governance and corporate value.So,can high-quality internal control prevent tax inspection risks and improve tax inspection quality and efficiency? There are currently few studies on the governance effectiveness of internal control on tax audits.The N Tax Inspection Bureau carried out the internal control optimization of audit risk in 2020,a practical example for this thesis.This thesis establishes its theoretical framework by analyzing previous research findings on tax inspection risk,internal control inspection effectiveness,governance effectiveness,and their respective theoretical foundations.On this basis,and using the N Tax Inspection Bureau as a case,the thesis begins with the current state of internal control,analyzes the problems and causes of the case prior to internal control optimization by combining the five elements of internal control,analyzes the methods of internal control optimization used by the N Tax Inspection Bureau,and evaluates the internal control optimization of the N Tax Inspection Bureau from three perspectives: quality evaluation data of the internal control supervision platform,internal control objectives of the four links of inspection,and inspection quality and efficiency assessment and evaluation.First,the effect of the evaluation is assessed,and then the thesis’ s conclusions and insights are obtained.Through the comparative analysis of multiple index datasets from 2019 to 2021,it was determined that,compared to the previous two years,the bureau has significantly reduced law enforcement faults and more promptly processed feedback on the quality evaluation data of the internal control supervision platform in 2021;in the realization of the internal control objectives of the four links of the audit case source,the case source processing,the inspection and evidence collection,the trial and characterization,and execution into the bank are more standardized.Thus,we have achieved significant improvement in more than one aspect.Based on the case of internal control optimization in the N Tax Inspection Bureau,the following conclusions are drawn.High-quality internal control can have a positive effect on the effectiveness of unit governance,and through effective internal control of inspection risks,grassroots taxation inspection authorities can effectively prevent tax inspection risks,assist in achieving inspection goals,and enhance the quality and efficiency of tax inspection.