Field audit will be initiated when the IRD detected irregularities or indication on of non-compliance with the Inland Revenue Ordinance.
In the course of field audit, the field auditor will not only examine books and records but also site visiting. Filed audit work is normally focused on the most recent year of assessment for which a tax return has been submitted. Field auditors will project differences for back years in accordance with the field audit findings. Other methods may also be applied to ascertain the understated amount of profits for the years involved.