In a computer-assisted audit, the use of computerized data extraction and statistical sampling are tools the revenue auditor uses to perform the audit. Businesses are selected for computer assisted auditing based on several factors, including the complexity of the taxpayer's business, electronic commerce activities, the volume of records, types of records, and computer record retention. Many businesses are still audited using traditional audit techniques. Maryland law allows the comptroller to examine any records or data pertaining to information included in tax returns. It also authorizes random scientific sampling techniques.
Taxpayers can choose one of three ways to make the data available.
The Comptroller's Office can extract the data from the taxpayer's data system. The taxpayer can extract it and give it to the Comptroller's Office. Or, the taxpayer can choose to send the data to a third party to be extracted. While the Comptroller's Office prefers to receive the data in Microsoft Excel format, the comptroller's software can read almost all record file types and can convert other file types. A computer-assisted audit isn't a fishing expedition through a business's computer systems.