What are the criteria to be selected for a Tax Audit?
Well, the selection process could involve any or all of the following:

HQ instruction
policy decisions
computerized selection
manual selection’
informer based selection

Besides the above reasons, other factors that can trigger it include the following:

industry analysis
informer or information based
taxpayer record and background
specific issues (e.g. transfer pricing)
inconsistent and conflicting expenditure in […]

These are a series of articles to offer some basic understanding of our Malaysian Tax audits .

(a) Tax Audit and its purpose:-

Tax audit is a detailed examination of the accounting and financial records of the taxpayer including third party records to establish that the return submitted by the taxpayer to the Inland Revenue is true […]