Auto Body and Repair Industry - Audit Technique Guide (ATG)

MSSPMarket Segment Specialization ProgramAuto Body and Repair IndustryThe taxpayer names and addresses shown in this publication are hypothetical. They were chosen at random from a list of names of American colleges and universities as shown in Webster's Dictionary or from a list of names of counties in the United States as listed in the United States Government Printing Office StyleManual.This material was designed specifically for training purposes only. Under no circumstances should the contents be used or cited as authority for setting or sustaining a technical position.Department of the TreasuryInternal Revenue ServiceTraining 3149-127 (8/95)TPDS 83999SAuto Body/Repair IndustryTABLE OF CONTENTSPageIntroduction ................... xiChapter 1 -- The Nature of Auto Body/Repair IndustryOverview 1-1Description of Auto Body Repair Process ... 1-2Repair/Replacement .......... 1-2Paint Process ............ 1-2Other Processes ........... 1-3Estimation Process .......... 1-3Differences Between Body and Repair Shops .. 1-4Chapter 2 -- Documents AvailableIntroduction ................. 2-1General Books and Records .......... 2-1Specific Documents .............. 2-2The Mitchell Guide 2-5Organization of Records ........... 2-5Chapter 3 -- Initial Interview/Tour of BusinessInitial Interview .............. 3-1Tour of Business ............... 3-4iiiChapter 4 -- Balance Sheet Accounts and M-1 AnalysisIntroduction ................. ...