The effect of electronic applications on tax auditing: An investigation on auditing parties

Every government is in need of public revenues in order to subsidize public services, such as health, security and education. In this respect, taxes constitute the primary public revenues of the government. It is very crucial to compute taxes accurately to prevent tax loss and evation which emerge public deficit. Taxpayers demand cost reduction in stationery, labor force and transportation in the process of taxation, and accurate assessment of taxes by minimizing the faults. Members of accountancy profession like investment advisors and certified public accountants lend assistance to taxpayers in the taxation process. With regard to both for the government, who is the creditor, and the taxpayers, who are the borrowers, the most important issue is the computation of the tax with low-cost rapidly and accurately. Depending on the advances in Information Technology, developed countries have started to use electronic taxing system. Developed countries have been using electronic taxing system in the whole process of tax assessment and payment since they consider that electronic taxing system is environmental-friendly and the service is faster and cost-efficient. Like in other economically-developed countries, advances in Information Technology have also been pursued in Turkey and it has been entered in the process of electronic application via E-state application. In line with this, the Ministry of Finance has initiated VEDOP Project to move into electronic taxing system. By the use of VEDOP Project, several applications, such as electronic statements, invoices, records, returns, confiscation and tax auditing have been put into use. The aim of the study is to investigate the effect of the electronic applications made in the scope of VEDOP Project on tax auditing which constitutes the base of a taxing system. Whether the electronic applications would have a positive effect on tax auditing has been analyzed by using auditing functions. Specifically, whether the electronic applications would have a positive effect on tax auditing functions, namely, suppression, research and educational functions has been analyzed in cooperation with the auditing parties,such as tax inspectors, tax inspector assisstants, investment advisors, certified investement advisors and accountancy officers. The result of the analysis has put forward that the electronic applications have affected tax auditing functions positively. Thus, it has been revealed that electronic applications have a positive effect on tax auditing based on the finding that effective tax auditing is realized through its functions accurate running.