What is the purpose of a tax audit?

A tax audit serves the specific purpose of examining tax returns to ensure compliance with tax laws and regulations. During this process, tax professionals or auditors review and verify the information provided in a taxpayer's return, including income, deductions, and credits claimed. This examination helps identify any discrepancies, assess the accuracy of the reported figures, and ensure that the taxpayer has adhered to the applicable tax laws.

The focus on compliance is crucial because it helps maintain the integrity of the tax system, ensuring that all taxpayers fulfill their obligations and contribute fairly. By conducting audits, tax authorities can also deter fraud and evasion, thereby promoting a level playing field for all taxpayers. This role is essential for enforcing tax laws and ensuring that government revenue is collected properly.

Other choices do not align with the primary functions of a tax audit. For example, determining an individual's credit score or providing financial planning services is unrelated to the tax audit process. Similarly, preparing a will falls outside the scope of tax auditing, which is strictly concerned with reviewing tax compliance.