What a Mock Audit Can and Can't Tell You

The short version

A mock audit asks the questions an examiner might ask and reports how well the claim's records answer them. That is useful, because it shows weaknesses while there is still time to fix them. It is not a forecast. It cannot say whether a claim will be selected for examination, how an examiner will see it or whether a credit will be allowed. Those outcomes depend on facts and decisions that nobody outside the tax authority can see.

Use it as a tool

The best use of a mock audit is to improve a claim's support. Treat the score as one input among several. Read the fix list, decide which items matter, collect the records or write the explanations that are missing and test again if the claim changes a lot. A claim with a good score and a reviewer who has thought hard about each project is in a better position than one with a good score and nobody who has looked closely.

Reading a score sensibly

A score summarizes the gaps found. A low score does not mean a claim is safe, because the test can only look at what it was given, and a tax authority may ask different questions. A high score does not mean a claim is wrong. It means there are more weaknesses to address. Do not use the number to decide whether to file. Use the list to decide what to fix, and let your CPA or enrolled agent decide the rest.

A short illustration

This is invented. A claim receives a high-risk score. The list shows that most findings are the same issue: time allocations with no supporting records. The firm gathers timesheets and notes, and a second run produces a much lower score. That is a good use of the tool. Now imagine the opposite: a claim receives a low-risk score, but the work behind two projects was routine. The tool had no evidence to suggest otherwise, because nobody had recorded what the work involved. The score was low and the claim was still weak. That is why the reviewer's judgment matters.

Insurance and protection wording

A mock audit is not insurance, and it is not a promise of protection. Cost Guru and its partners do not sell insurance through this site. Any description of audit protection or audit support is provided only as approved by Swanson Reed, its carrier and counsel. Please read the audit protection pages for what can currently be said, and ask Swanson Reed for terms.

How to explain a mock audit to a client

If you offer mock audits to your own clients, the words you use matter as much as the score. Say plainly that the test looks at the claim's records and finds weaknesses. Say that it is run by software and is a preparation step, and that a professional will still review the claim. Avoid phrases such as "audit-proof" or "passed", which suggest an outcome nobody can promise. It also helps to explain that a list of findings is normal: nearly every claim has some, and the value is in fixing them before filing.

A short written note to the client, kept with the claim file, is a good habit. It records what was tested, what was found, what was fixed and who reviewed the result.