How creditARMOR Audit Readiness Works
creditARMOR tests a claim the way an examiner might, and tells you where it is weak. This page follows one claim from loading to a fix list, and explains what each stage can and cannot do.
The idea behind the test
When a tax authority examines a research credit claim, it looks for support: does the evidence show the work, do the costs match the people and time, are the business components clearly defined and consistent. A mock audit asks the same kinds of questions before the claim is filed, while there is still time to improve it. creditARMOR is a Swanson Reed product, and the white-label version runs under the partner's name. The mock audit is run by AI, and it is a preparation tool, not a prediction.
The flow
- 1
Load the claim
Claim data and records are brought in. The claim can come from our R&D agent, TaxTrex or another source, subject to what is confirmed for your setup.
- 2
AI mock audit
The claim is tested against typical examination questions. The tool looks at whether each business component is described, whether evidence is dated and linked to the work, whether cost figures follow from the records and whether allocations look reasoned or arbitrary.
- 3
Risk score and fix list
Weak spots are scored and listed. The list is ranked, so the gaps that matter most come first, and each item says what is missing and what would address it.
- 4
Optional expert review
Specialists can review before filing, where that option is chosen. A human looking at the same findings can add judgment the tool lacks.
- 5
Audit protection
Options exist if the claim is questioned. What can be said about them is limited to wording approved by Swanson Reed, its carrier and counsel.
What gets tested
These are examples of the kinds of questions. The exact tests are confirmed by Swanson Reed.
| Area | Typical questions the mock audit asks |
|---|---|
| Business components | Is each one clearly described, and is the uncertainty explained? |
| Evidence | Is it dated, tied to the project and consistent with the claim? |
| Time and wages | Do allocations follow from records, or are they round-number estimates? |
| Other costs | Are supplies, contractors and other costs linked to the projects? |
| Consistency | Do the forms, schedules and narratives agree with each other? |
Reading the results
A risk score is a summary of how many and how serious the gaps look. A low score means fewer weaknesses were found, not that the claim is safe. A high score means more were found, not that the claim is wrong. The more useful part is the list, because each item points to something concrete to fix: a missing record, an unexplained split, a description that does not say what was uncertain. Work through the list from the top, and run the test again if the claim changes substantially.
A worked example (illustrative)
This is an invented scenario. A claim covers two projects. The mock audit finds that the first has dated test reports and clear notes, and raises one low-priority question about a supplier invoice. For the second, it finds that the description reads like a routine feature build and that the two engineers' time shares are the same round figure with no supporting records. The fix list asks for a clearer statement of the technical uncertainty and for time records or a reasoned explanation of the split. The firm collects both. The second run produces a shorter list. The reviewer files the claim knowing where the weak points were and how they were addressed.
Limits
A mock audit does not guarantee acceptance of a claim or predict whether it will be examined. It tests what is in front of it, so it cannot find problems in records that were not loaded. It does not replace the judgment of a licensed CPA or enrolled agent and does not give tax or legal advice. Integrations, review tiers and partner pricing are proposals until confirmed by Swanson Reed.
A mock audit does not guarantee acceptance or predict examination.
Preparing for a mock audit
A test run on an incomplete set of records will only tell you the records are incomplete.
- Gather the claim, the draft forms and any narrative in one place.
- Collect the records behind each figure: payroll, time, invoices, project notes.
- Check that the evidence is dated and labeled by project.
- Decide who will read the results and act on the fix list.
- Allow time to fix findings before the filing date.
After the fix list
Work through the list from the top. For each item, decide whether it is a records problem, which you solve by gathering what exists, a wording problem, which you solve by writing a clearer explanation, or a substance problem, where the work does not support what was claimed. The third kind needs professional judgment, because the right answer may be to reduce or remove part of a claim. Keep a note of what you decide and why, since that note is part of the story if the claim is ever questioned.
Who should run it
A mock audit works best when run by someone who will act on it: a reviewer at a firm, or a finance lead at a business. It can also help to have a second person, such as the technical lead, answer questions the fix list raises. The tool does not require technical skill to operate, but interpreting the results requires an understanding of the claim.
Audit readiness questions
Can I run it more than once?
The aim is that you can test again after fixes. Confirm the current arrangements with us.
Does a high score mean I should not file?
Not necessarily. It means there are weaknesses to look at. Your CPA or enrolled agent decides what to do.
Who sees the results?
The partner or business that runs the test, and anyone they choose to share it with. Access is agreed in writing.
Is audit protection insurance?
Cost Guru and its partners do not sell insurance through this site. See the audit protection page for what can currently be said.
Keep exploring
creditARMOR Features
The seven tools inside creditARMOR, a Swanson Reed audit-readiness product, and how they fit together.
Learn moreR&D Audit Protection
Options if an R&D claim is questioned: coverage, expert support and help for claims already under examination.
Learn moreTaxTrex + creditARMOR Bundle
Use TaxTrex to prepare and document the R&D claim, then creditARMOR to test it, under your brand.
Learn moreWhat a Mock Audit Can and Can't Tell You
A mock audit helps you prepare. It does not predict outcomes. Please read this before relying on a result.
Learn morePlease note: Estimates and drafts are prepared by software for review by a licensed CPA or enrolled agent. This is not tax advice.
Find out what AI would cost you
Book a free call. We will map three opportunities and give you a rough idea of cost and payback.