Types of Audits
There are four main types of insurance premium audits: physical audits, mail audits, telephone audits, and preliminary audits. A physical audit is when an auditor reviews your business records onsite. On the other hand, a mail audit is when you are responsible for mailing records and tax reports or sending them online. Similarly, a telephone audit is when an auditor calls and walks you through the steps of the auditing process. Finally, a preliminary audit is a succession of fieldwork completed before the end of the accounting period to accelerate the audit report.
Information for Audits
Audits can be frustrating and even overwhelming if you or your company in Lehi are not adequately prepared. But when it comes to smooth, efficient insurance auditing, document preparation is the key. Most auditors require a description of a company’s operations, its owners’ names and titles, the names of all its employees and their job duties, and the names of subcontractors, as well as certificates of insurance for those subcontractors. Auditors may also require payroll records such as gross pay, bonuses, commissions, holiday pay, sick pay, overtime pay, vacation pay, pretax amounts, Section 125 amounts, and 401k amounts. Other information required by insurance auditors may include but is not limited to cash disbursements books, checkbook registers, 941 forms, 940 forms, 1099 forms, W-2 forms, W-3 forms, income tax returns, gross sales for each service type, profit and loss statements, and general ledgers. Restaurant and bar audits in Lehi may also be required to provide the history of tips, free meals, live entertainment, and liquor sales.
One of the most crucial components of insurance auditing in Lehi is understanding the auditor’s process. A few key terms such as payroll, gross sales, and subcontractor may increase comprehension. In treasury management, a payroll is referred to as a list of employees and the amount of money they are to be paid as well as the work benefits they are entitled to. In insurance auditing, payroll is the premium basis that auditors use to calculate premiums in workers’ compensation insurance, a process known as remuneration. Gross sales include the total amount of money charged for all services performed and products sold. Finally, a subcontractor is an individual or business that agrees to perform some or all of the obligations of another individual or business. Essentially, they do the work that a contractor is unable to do.
Larson and Company, located in Lehi, Utah, staffs auditors and tax professionals and provides statutory accounting while maintaining an honest, considerate relationship with its customers.
Larson and Company is an insurance auditor company in Lehi that provides statutory accounting and tax services to its customers.