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Veterinary Audit Technique Guide (ATG) - Table of Contents

Publication Date: April, 2005

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.


This Audit Techniques Guide (ATG) is presented in several chapters. These chapters can be accessed and then printed by following the links in the Table of Contents below. To print the entire ATG please refer to the PDF version.

Table of Contents

Foreword

Chapter 1, Description of the Practice of Veterinary Medicine

  • Industry Background History
  • Demographics of Veterinarians
  • Education
  • What Veterinarians Do
  • Definition
  • Veterinarians by Type of Practice
    • Large Animal
    • Small Animal
    • Mixed Animal
  • Industry Terminology
  • Industry Organizations
  • Income of Veterinarians
  • Exhibit 1-1: Glossary of Veterinary Medicine Terms

Chapter 2, Industry Issues

  • Entity, Tax Year, and Accounting Method
  • Entity Overview
    • Personal Service Corporations
    • Personal Service Corporations & Qualified Personal Service Corporations Explained
  • How to Request a Change in Tax Year under Rev. Proc. 2002-38
    • Section 444 Election
    • Obtaining Automatic Approval
  • Method of Accounting
    • Selection of Proper Accounting Method
    • Cash Method
    • Accrual Method
    • Relief from the Accrual Method
    • Hybrid Method
    • Is Merchandise an Element in the Taxpayer’s Business and is it Income-Producing?
    • Handling Changes of Accounting Method
  • Balance Sheet Issues
    • Intangibles
    • Loans to Shareholders
  • Income Issues
    • Gross Receipts
    • Additional Income Issues
    • Sale of the Veterinary Practice
    • Passive Income Re-characterization
    • Self-Rented Equipment
    • Self-Charged Interest
  • Expense Issues
    • Lease Verses Purchase
    • Automobile Expense
    • Entertainment, Travel, and Meals
  • Constructive Dividends
    • Loans to Shareholders
    • Payment for the Shareholder’s Benefit
    • Excessive Compensation/Rents/Interest
    • Shareholder’s Use of Corporate Property
    • Bargain Purchases
  • Section 1374 Built-In Gains IRC S1374
    • Tax on Built-In Gains IRC S531
    • Whipsaw Issue
  • Accumulated Earnings Tax Issue
  • Conversion of a PSC to a Limited Liability Company
  • S Corporation Issue: Inadequate Compensation
  • Exhibit 2-1: Excerpt, AVMA

Chapter 3, Examination Techniques

  • General Techniques
  • Veterinary Office Procedures and Records
  • General Procedures
  • Initial Interview/Internal Controls
  • Initial Interview
    • Evaluating Internal Control in a Small Business
    • Environment
  • Examination Techniques - Balance Sheet
    • Cash
    • Accounts Receivable
    • Investments
    • Inventory
  • Exhibit 3-1 Form 4564, Information Document Request
  • Exhibit 3-2 Audit Plan
  • Exhibit 3-3 Initial Interview Questionnaire

Chapter 4, Supporting Law/ Industry Organizations and Websites

  • Introduction
  • Exhibit 4-1 Cited Code Sections
  • Exhibit 4-2 Cited Regulations
  • Exhibit 4-3 Cited Revenue Rulings and Revenue Procedures
  • Exhibit 4-4 Cited Court Cases
  • Exhibit 4-5 Selected Industry Organizations and Web Sites
  • Exhibit 4-6 Other Cited Web Sites

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Page Last Reviewed or Updated: 24-Sep-2014