If the government suspects you might have committed tax evasion, the first step is that it will order an audit. An audit can be triggered for a number of reasons — the government actually keeps this list of reasons secret — but when an audit happens, an auditor will begin a thorough review of your tax return and financial statements. The auditor will be looking for a number of things, particularly signs that you either under-reported your income or overstated your deductions. If the auditor finds no reason to pursue its case against you, your case will be closed.