Documenting the Flow of Receipts and Expenses Through the Taxpayer’s Books and RecordsStartInterview taxpayer to determine financial responsibilities (At a minimum, determine how income is received, how expenses are paid, who is responsible for receiving and recording income and expenses.)Trace receipts and expenditures through the taxpayer’s books and recordsAny inconsistencies identified? (If yes, identify any additional information needed and secure that data.)Record information in the workpapersEnd