Overview
A managed audit allows qualifying taxpayers to conduct much of the audit fieldwork themselves under the supervision of the Texas Comptroller. When properly executed, a managed audit can significantly reduce the time, cost, and disruption associated with a traditional audit while often providing substantial benefits, including the potential waiver of penalties and interest.
SDM has extensive experience guiding taxpayers through every phase of the managed audit process. We work with our clients before a managed audit is requested to determine whether the program is the right strategic choice, prepare the necessary audit plans and timelines, develop sampling methodologies, perform complex reconciliations, organize and analyze accounting data, and coordinate directly with the Comptroller throughout the engagement. Our team routinely leverages advanced data analytics and sophisticated Excel modeling to review hundreds of thousands—or even millions—of transactions, allowing us to efficiently identify reporting errors, document exempt transactions, and produce audit schedules that withstand detailed review.
Our involvement does not end with the completion of the managed audit. We continue to advocate for our clients throughout the Comptroller’s review process, resolve disputed issues with the audit team, negotiate settlements when appropriate, and, if necessary, represent taxpayers through the administrative hearings process and subsequent litigation. Whether serving as strategic advisors behind the scenes or managing the entire engagement from start to finish, we help taxpayers navigate one of the most complex and technically demanding audit programs offered by the Texas Comptroller.