Identifying and Escalating a Tax-Audit Trigger: An Internship Case Study of Accounting and Tax Compliance at H.R. Suresh & Co.

Abstract

Accounting, taxation and audit are closely linked, and a compliance obligation can surface only when the figures are finally computed. This case study examines a real-life accounting and tax compliance problem encountered during an internship at H.R. Suresh & Co. while handling the accounts of a small jewellery business. The assignment began as accounting work in Tally, including the audit and clearance of suspense-account entries. During the subsequent tax computation in Winman, the client's income was found to exceed ₹3 crore, which meant that an audit was required. The discovery interrupted the planned workflow of accounting and tax computation, and the matter was transferred to a senior employee. The paper describes the background and nature of the work performed, the challenges faced and how they were resolved, and the skills developed. It concludes that keeping proper accounting records, assessing compliance requirements early, carrying out a preliminary review before tax computation, and escalating to senior staff at the right time make such tasks more efficient and reliable.