Transcription of Retail Industry Audit Technique Guide
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Retail Industry Audit Technique Guide NOTE: This Guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. All references to code sections are to the Internal Revenue Code (IRC) unless otherwise specified. Publication Date: February 2009 Page 1 of 158 Table of Contents Chapter 1: Description of the Retail Industry .. 5 Purpose for the Audit Technique Guide .. 5 Description of the Retailer .. 5 What Retailers Do .. 5 Demographics of the Retail Industry .. 5 Retail Entities .. 6 Useful Retail Web Sites .. 6 Unique General Industry Terminology .. 6 Chapter 2: General Issues in Retail .. 8 Initial Interview .. 8 Information Document Request .. 9 Books and Records.
Cost Complement The average relationship existing between the cost of merchandise and the retail value of the items handled during an accounting period. The dollar value of the inventory at cost is divided by the dollar value of the inventory at retail. Layaway A method of deferring payments whereby goods are retained by the
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