PRIORITIZATION OF DISCRETIONARY COVERAGE

The following areas were included in our FY 1999 Annual Audit Plan. These areas were selected through analysis of the results from our risk assessment process. The areas identified through the strategic planning process as warranting audit coverage are prioritized in the following table. Based on the most recent resource estimates, there are seven emphasis areas that will be initiated in FY 1999. Since the amount of discretionary work that is initiated is dependent on the mandatory workload (which has not been fully developed), estimates of available resources will be adjusted accordingly. If additional resources become available, the additional emphasis areas will be used as audit inventory.

FY 1999 EMPHASIS AREAS

PROCESSING RETURNS AND IMPLEMENTING TAX LAW CHANGES DURING THE TAX FILING SEASON

PROVIDING QUALITY TELEPHONE AND WALK-IN CUSTOMER SERVICE

IMPLEMENTING THE IRS RESTRUCTURING AND REFORM ACT OF 1998

SELECTING AND CONTROLLING RETURNS FOR EXAMINATION

MINIMIZING TAX FILING FRAUD

FOLLOWING UP ON PREVIOUS AUDIT REVIEWS

PROCURING GOODS AND SERVICES

ADDITIONAL EMPHASIS AREAS AS RESOURCES PERMIT

IMPLEMENTING THE INFORMATION RETURNS PROGRAM

ISSUING AND EFFECTIVENESS OF TAXPAYER NOTICES

VULNERABILITY ASSESSMENTS

- ADJUSTING TAXPAYER ACCOUNTS

- MANAGING SUSPENSE ACCOUNTS

- SELECTING CRIMINAL INVESTIGATION CASES

PROCESSING AT THE SERVICE CENTERS

PROCESSING REMITTANCES AT DISTRICT OFFICES AND SERVICE CENTERS

IMPLEMENTING CRIMINAL INVESTIGATION ACTIVITIES

DETERMINING QUALIFICATION FOR EXEMPT ORGANIZATION STATUS

APPROVING AND ADHERING TO EMPLOYEE PLANS

MANAGING REAL ESTATE, PROPERTY AND EQUIPMENT

MANAGING AND DEVELOPING HUMAN RESOURCES

CONDUCTING RESEARCH AND DEVELOPMENT

BUDGETING AND FINANCIAL MANAGEMENT