Tips to Reduce Your Chances of an IRS Audit

The IRS audits more than 50,000 businesses and 1,250,000 individual taxpayers each year, mainly via correspondence exams. Although no one can guarantee you will never be audited, you can lower your chances of being selected for an audit by following a few straightforward strategies.

Tip 1: Check Your Arithmetic

Double check your calculations for all the numbers on your tax return to ensure they are correct. IRS computers review the income and deductions on returns for accuracy and if yours has several miscalculations your return could be flagged for an audit.

Tip 2: Don't Overstate Your Deductions

Make sure you have supporting documents to prove every deduction on your return. Your deductions are evaluated relative to other taxpayers in your income bracket by IRS computers. This is done to spot taxpayers claiming relatively high deductions, such as $25,000 in charitable contributions by a taxpayer with an adjusted gross income of $75,000.

Tip 3: Don't Mix Business With Pleasure

Self-employed taxpayers are commonly audited by the IRS. If you are self-employed, keep mileage logs for the business use of your vehicle (list the date, location, purpose of your trip, and miles driven) and retain all receipts for meals and entertainment (on the back of the receipt write down the names of the people you entertained, their business relationship to you and the business matters you went over). Also, if you are a claiming a home office deduction, include only the amount of space you are using strictly as your office. The IRS does occasionally visit taxpayers to evaluate the accuracy of the percentage used to claim home office deductions.

Tip 4: Don't Understate Your Earnings

Taxpayers in occupations that receive a substantial portion of their earnings in cash, such as waiters and small shop owners, or service-oriented professionals like lawyers, are also more likely to be scrutinized by the IRS. This is especially true if you are behind in filing and paying your taxes and if the IRS discovered that you failed to report income in the past. Be careful to not understate your earnings because depending on your profession, your clients may be deducting amounts paid to you on their tax returns. For example, the IRS may find out a lawyer understated income because a business deducted professional fees paid to that lawyer on its tax return but the lawyer never reported that income.

Tip 5: Keep All Your Supporting Documents

You may think you are in business but the IRS could have a different opinion if you are not making profits for several years. This is because people will rarely stay in a business that is not financially successful, unless of course they are in it for a hobby. While it is common for new sole-proprietors and startup companies to be unprofitable during the first few years in business, if you are consistently losing money, the IRS may want to evaluate your deductions more closely. You should have no problem proving that you are not in it for a hobby if you always maintain the best possible records to support your expenses.

Tip 6: Know the Difference Between Employees and Independent Contractors

If you run a business, make sure that the people who work for you are properly classified as either employees or independent contractors. Companies with a lot of contractors and few or no employees are more likely to be audited because the IRS will want to verify that these companies are not evading payroll taxes.

Tip 7: Attach Explanation Statements

Answer all questions on your tax return and attach statements to explain items on your return that may look suspicious to the IRS. For example, if you had $100,000 in business income during the tax year and deduct $75,000 for business travel, by attaching an explanation statement to your return you will reduce your chances of a full audit because the IRS will see that you have a basis for the deduction.

Final Notes

Keep in mind that if you are selected for an audit, you will be required to provide the IRS with supporting documents of all business deductions taken, such as travel, meals and entertainment expenses, to prove that they were a necessary cost for your business. The more organized you are, the better your chances of the IRS agent assigned to your case concluding that you do not owe additional taxes.

Keep all your receipts and supporting documentation for at least three years after you file your return because the IRS can audit you anytime during this time frame. However, if the IRS suspects you of fraud there is no time limit for which you can be subjected to an audit.

About the author:

Jovana Jerinic is a Certified Public Accountant that provides accounting and tax services to individuals and small businesses, including tax return preparation, tax planning and IRS audit representation. Please visit Orange County CPA for more information.

Organization of Tax Audit Based in Tax Types

Tax audit, as a special tax administration function, has special attention to mentioning everyday actions and procedures in order to help increase effectiveness in everybody's exercise of their duties, guaranteeing, at the same time, taxpayers' rights according to the following characteristics:

- specification, in the sense that there be no reason for doubt or double meanings in the formulation of duties;

- coherence, so that workers can see a certain duty in a logical way and without overlapping;

- usefulness, in the sense of avoiding complex and lengthy procedures;

- effectiveness, so that functional duties will not affect the artificial growth of fiscal burden and administrative barriers;

- Comprehensiveness, in the sense of providing solutions for various situations that might arise in the relations between taxpayers and tax officials and resolving these situations in compliance with the code of professional ethics.

The organizational structure of audit (see organizational chart) meets the requirements for an effective and functional audit, based on the needs, which comply with strategic objectives established in the orientations of the Tax Audit Directorate in the General Tax Directorate. The tax audit is part of the structure of this office. Let's explain how they develop the function of tax audit according to tax types.

Audit Offices for VAT

In observance of national strategic plans and objectives for VAT audit, besides the requirements of Law the vat audit offices entirely focus on the application of requirements specified in Law "On VAT" from taxpayers. Concretely, inspectors in charge of this duty must check, audit, compare and correct taxpayers' declarations for:

- accuracy of changes related to name, address and economic activity, or any changes in information taxpayers provide to the tax authorities at the time of the request for registration;

- Legal accuracy in completing invoices for all incoming payments subject to taxable supplies;

- Visible exposure of prices in the premises where activity is exercised;

- VAT payment rates as compared to taxable sales and the average rate in the respective sector;

- Accuracy of VAT declarations in sales and purchases, compared to monthly declaration and payment forms;

- Requests for deregistration, cases of declared bankruptcy, activity transfer;

- Requests for assessment of sections in Declaration and Payment Form (DFP);

- Requests for audit by General Taxation Directorate (GTD);

- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for taxable and exempt supplies, as well as VAT payment;

- Requests for VAT refund, based on Regulation "On VAT refund";

- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for taxable and exempt supplies, according to Decision of Council of Ministers (DCM).

- Full cost calculation for every type of goods or service (purchase price according to the invoice, transportation costs, customs tax and other general costs) and its comparison with the sale price declared by the company, as well as its compliance with the Law "On tax procedures" and the instruction thereof, investigating the price and comparing prices according to price ascertainment-acts kept by Tax Office (investigation office). In cases of agreements that GTD has with business associations for certain types of goods and for the cost (price) per m² in construction, comparisons are made for every analytical case and tax obligated are calculated accordingly;

- Actions with the cash account (in national money and foreign currency), transactions in cash above a threshhold;

Audit Office for Income Tax (AO-IT)

In observance of duties for auditing self-declared indicators of DPF for profit tax and accounting balance sheet by companies,besides the requirements of Law "On tax procedures" and Law "On accounting" as, this audit office entirely focuses on the application of requirements from Law "On income tax" from taxpayers.

As regards audits of balance sheets and financial accounts, inspectors from this office can:

- compare values in balance sheet items to those in the general ledger (for manual diaries and IT ones);

- make arithmetic verification of synthetic accounts in the ledger;

- crosscheck sums in the balance sheet with sums in the ledger;

- compare current result account and other accounts relevant to this result;

- compare declared incomes in the accounting balance of the previous year with the ones declared in DPF and VAT in the center or in subsidiaries as well as with data received from other sectors in the Office and other offices or institutions;

- make overall and analytical checks on legality of expenses made, according to the requirements of Law "On Income tax".

- check inventories and production in process;

- check registration of fixed assets value, for both incoming and outgoing assets;

- Make a "balance of changes" created from comparing the accounting situation in the beginning and at the end of the exercise of activity.

Audit Office for Excise, Withheld Tax and Insurance Contributions (AO-EWT-IC)

This office audits taxpayers exercising their activity in the trade and production of excise goods, with or without fiscal label, according to the specifications of Law "On excise". At the same time, this office audits the observance of requirements in Law "On tax procedures", Law "On income tax", and Law "On VAT", for the taxpayers audited by this office.

In terms of excise audit, inspectors in this office can:

- Check the observance of legal procedures for authorizations issued to persons and approval of land parcels, buildings or other premises, as well revoke or change such authorizations or approvals;

- Regularity of transfers for excise authorizations and/or approval of customs storehouse;

- Accuracy and justifying documentation for payment of excise obligations and observance of relevant legislation in this respect;

- observance of audit procedures for use of raw materials and additional substances, mixtures or other actions with excise goods or relative to them;

- Observance of legal requirements for keeping records by excise authorized persons;

- Check the way domestic or imported excise goods are produced, packaged and stored;

- Observance of legal requirements for the transportation of excise goods;

- Observance of legal requirements in fuel deposits;

- Check of justifying documentation and calculate withheld taxes according to the requirements of the Law "On income tax";

- Observance of requirements for controlling the calculation and payment of employer's contributions.

This audit office administers the audit process bearing in mind the Excise Manual, which is a separate manual for the category of excise goods.

If exist a specific approved version of the Audit Manual for Social and Health Insurance Contributions for auditing such contributions he can be a guide in such cases.

Self Insurance Statutory Audit Preparation

Statutory audit preparation is critical, particularly at the corporate level. It's essential to have a full-spectrum statutory audit function in place at all times. Self insured businesses require a complete information system based on formal compliance criteria.

Preliminary Meeting

The usual process for statutory audits involves a preliminary meeting between the regulator and the organisation to be audited.

The meeting creates a format and working context for the audit and defines key issues such as:

Providing a knowledge base for the audit program and explaining the compliance issues;
Defining the audit functions;
Identifying which areas of compliance and/or locations are to be audited;
Scheduling the audit - Managing time frames, setting dates and specifying the audit functions to be carried out;
Clarifying audit standards and required levels of information to be assessed.

This meeting is a briefing, and is best practice for regulators, ensuring that audit subjects are fully informed of the regulator's requirements.

Important: Senior managers should be present at this meeting if at all possible. If not, fully qualified senior level attendees must be substituted. Statutory audits can directly affect business operations, particularly business licensing. It is strongly advised that business management take advantage of this opportunity to ask questions and seek clarifications from regulators.

Planning Preparation

A structured, holistic preparation for the regulatory audit is essential. Each element subject to audit should be mapped, and a management program for preparation of information prepared accordingly. This approach also ensures there'll be no missing information or other embarrassments when the audit is conducted.

(Note: Fully compliant reporting systems produce information in the formats required by regulators. Other systems may require reworking, which needs to be scheduled on your preparation plan to ensure completion prior to audit.)

Preparation should be carefully time managed, to ensure full documentation is available for the audit. Scheduling completion should also allow time for management review and any further work to be done well before the audit date.

Planning implementation

The preparation program should be managed by a delegated, fully qualified person who is fully aware of the entire range of audit issues. The preferred person is an OHS professional, or local manager with current OHS training.

Delegations for preparation functions may be given to appropriate individuals with expertise in the specific audit functions.

Delegation specifically should not be given to any person who's in any way unsure or unfamiliar with the statutory issues, documentation and compliance requirements of the audit.

Planning stages:

Creation of a complete timetable for all audit subjects;
Defining the evidence and information requirements relevant to the audit;
Appointing participants in the audit preparation activity;
Creation of criteria to ensure preparations meets audit standards.

Audit information preparation

Quality controls on information provided to the audit must meet statutory obligations:

Information standards must fully satisfy the audit requirements.
The information should be acquired from documentation that has been prepared over a good representative timeframe.
Data must provide statutory indicators as required by law.

Audit site preparation

Areas subject to auditing must be assessed to ensure compliance with regulatory requirements. Supporting evidence should originate from sites to be audited.

Personnel preparation

Regulators use sampling methodology when conducting audit operations. A suitable number of qualified staff familiar with the issues at different levels within the organisation will be required to assist the regulators during the audit. Safety management consulting services can assist in organising staff to meet these needs.

Appropriate briefings should be conducted to provide:

A high level of knowledge of the audit subjects;
Good comprehension of the criteria to be audited;
Clarification of issues among the staff selected.

Facilitate the audit activity

It is extremely important that the preparation program actively assists in the audit process, providing good quality information for the regulator.

This approach provides:

Full management oversight of all areas subject to audit;
Direct benefits to the organisation, ensuring compliance at all levels.

Common Problems

It must be emphasised that the audit is a potential asset to the business.

Failure to meet audit requirements indicates the business self insurance licence is at risk.

Lack of direction and facilitation of the audit activity will also allow auditors to deviate from the scope of the audit activity to be conducted.

Lane Safety Systems offers safety consulting, risk management, compliance management and safety management systems for self-insured businesses across Australia. For more information, visit Self Insurance

How to Avoid IRS Audits

Whether you're facing an audit or simply want to avoid one, here are 5 steps to take to deflect attention or get you prepared. Why me? You just got the invitation to a "party" that you hoped you'd never attend - an IRS audit.

How did this happen and how can you prevent it from happening again? We'll get to the how when we answer how to minimize the chances of an audit and how to survive one.

Rule 1: Check your arithmetic Few audits are generated by mathematical mistakes alone. The Internal Revenue Service computers automatically correct both mathematical errors and mistakes where you have claimed deductions that exceed limits set by the tax code itself, such as the 7.5% adjusted gross income limitation on medical deductions. However, too many of these kinds of errors indicate a sloppy return, and that that may lead to a full audit.

While it may seem obvious, let's not give the IRS any additional reasons to look at your return.

But how do you get picked?

An IRS computer program compares your deductions to others in your income bracket and weighs the differences. This secret IRS formula, called the DIF Score, is used to select returns with the highest probability of generating additional audit revenue.

For example, a taxpayer with a $50,000 salary would rarely have $10,000 in charitable contributions. This doesn't mean that, if you have only $50,000 in income and actually have $10,000 in charitable contributions, you shouldn't claim those deductions. It only means that if that is the case, be prepared to prove those deductions. The DIF formula considers not only your income and deductions, but where you live, the size of your family and your profession as well. Rarely will a family of five living in the Hamptons have an income of $30,000 or less. It may happen, but if it does, the IRS will want to know how. This leads to . . .

Rule 2: Arrange your finances so they don't stand out If you think you may be audited, see if your situation is likely to attract the tax man's attention. Here are groups that often do invite inquiries:

The self employed If you are self-employed, you have more opportunity to either "hide" your income or "create" deductions by converting personal expenses into business expenses. If so, be prepared to substantiate your expenditures as deductible expenses. The IRS is aware of the myriad "business vehicles" that go away to college every September, and the probability of your being audited is enhanced.

The audit rate for 2005 was 0.92%, up from 0.77% in 2004 and 0.65% in 2003.

Those who get their income in cash. The IRS has specific audit programs aimed at specific professions and occupations. Because they receive much of their income in cash, people who work in the gaming industry, waiters and even doctors are prime audit targets. The more cash you receive and the higher your income potential, the more likely the IRS is to find additional tax dollars by reviewing your return.

There are a number of kinds of areas of potential abuse that attracts the IRS. In recent years, the IRS has been targeting these areas for audit:

* Offshore credit card users

* High risk, high income taxpayers

* Investors in abusive schemes and promotions

* High income non-filers

* Unreported income

Rule 3: Substantiate. Substantiate. Substantiate In the audit itself, the IRS will focus on those items where taxpayers have historically failed to keep the required substantiation. Traditionally, auto, travel, meals and entertainment have been the areas most audited. To deduct auto expenses, you must establish the percentage of business use as well as the actual expenses incurred. I ask my clients to keep a mini-cassette recorder in their cars to record the business mileage and purpose. Kept contemporaneously, it is acceptable as sufficient substantiation of business use. Alternatively, a written diary of miles used for business would also be accepted.

You must have a receipt for all expenditures of $75 or more for meals and entertainment. The rule is simple: no receipt, no deduction. If the expense is less than $75, a diary notation is sufficient. However, both the receipt and the diary notation must have all of the following information:

* The amount paid

* The name and location of the restaurant or entertainment facility

* The person you entertained

* That person's business relationship with you

* The business discussion related to the entertainment

Unless you talk business, before, during or after the meal, your deduction won't be allowed. Remember, with the IRS, paper rules! With any and all expenses, deductions will be more easily allowed if you have a piece of paper to back them up.

Here's another piece of advice: Don't come in with a carton of miscellaneous receipts. The more "organized" your receipts and the more paper you produce, the easier it is for an IRS agent to conclude that you are organized, have full substantiation and owe no additional taxes.

One more point about how you're selected for an audit. The IRS computer selects many returns for audit on a random basis. Your income, deductions or where you live are irrelevant. Your number just came up -- you won the audit lottery. A student making $3,000 a year is just as likely to be selected as an accountant making $300,000. You just got "lucky."

The IRS can audit you for three years after you file your return. In reality, however, most returns are audited within 18 months of filing. This gives the IRS time to do the review and request the appropriate substantiation before the statute of limitations (usually the three-year period) ends. Once the statute has run out, the IRS normally cannot audit your return, and your expenses are insulated from examination. It has been claimed that the later you file, the less likely it is the IRS will pick your return to be examined. The IRS still insists that agents are not graded or evaluated on the amount of money they collect until -- surprise! -- congressional testimony reveals that policy is not the same as practice.

Rule 4: Know when to file I recommend that you have your return prepared early. If you have a big refund and are unconcerned with audit issues, file early and get your money back. If you have taxes due, and no penalty for underpayment, don't file until April 15. Don't ever pay a federal tax bill before it is due. It's an interest-free loan to the IRS.

On the other hand, if you are concerned about a potential audit, never file until the last minute. It won't hurt and can only decrease your chances of being selected.

Rule 5: Plan your taxes to preempt an audit I highly recommend the use of pre-audit strategies. If, say, you have a huge medical deduction for a year that you feel would increase your chances of being audited, attach copies of your medical bills to your return.

Alternatively, if you made an unusually large charitable contribution, attach a copy of the check or receipts to your return. The IRS computer will still kick out your return, but when a real person looks at it, the reviewer will recognize that you know the rules. It may actually reduce your odds of a full audit. IF YOU DO FIND YOURSELF THE SUBJECT OF AN AUDIT, WE CAN HELP!

Your entire tax audit case is should be handled by a lawyer, never by a "company." This means something and nothing should be overlooked or taken for granted. There should be no salesmen or assistants working on your confidential tax audit case at any time. Of course a tax lawyer may also rely on the valuable assistance of a select group of CPA's and professionals to help to develop your IRS audit case. But when it's all said and done, it is your lawyer's opinion and expertise that will be presented to the IRS and Tax Court judges. Please compare this level of tax audit service and applied expertise to that offered by companies instead of lawyers. You will be amazed at what a difference this extra protection and care can make in the outcome of your tax audit.

For a tax lawyer, typical clients are individuals, small businesses and professional people, and small-cap corporations who require the assistance of outside counsel at some time during their tax audit.

by: John Ellsworth, Attorney at Law at http://www.IRS-SOLV.com

Want to know more? Come to IRS-SOLV. Thank you.

Self Audit; The Success Tool

Auditing yourself is not a financial examination of your account here; instead it's the examination of your own behaviors and the comparison of the same with the normal behaviors. Before applying for a specific job, if one audits himself, it's nothing less than planned and organized utilization of one's abilities and potentials. Self Audit gives you the better understanding of yourself, helping you to trace and rate your abilities, strengths, weaknesses, desires, aspirations, attitudes, likes and dislikes.

As a result of such an audit, you learn to construct a balance sheet of your own balancing your assets (abilities) and liabilities (duties).

In order to have a self audit, first classify your qualities in three different categories, i.e. physical traits, intelligence traits and personality traits. Each of these traits of your may have some similarities and some differences from the general masses. The similarities which are present in the majority of the masses are known as general behavior, and the exceptions make you unique. These exceptions can either be positive or negative. In case of a positive exception individual is remarked with plus points while negative exceptions devalue your reputation.

The relation of self audit and job is a direct one. One ought not to apply for a job if it doesn't match with the physical, intelligence and or personality traits. And in other case one if wants to have a particular job which doesn't match with his traits, he should try to fit his traits in accordance with the job requirements. For instance, some physical traits like height and build etc specify some particular jobs, intelligence in its various forms, i.e. musical, verbal mathematical intelligence etc plays key role in determining one's career.

Keeping the personality in view and concentrating on likes and dislikes if one is fond of outing and cannot work while sitting on a single desk for long; he should opt for some out door job. Similarly if one is blessed with leadership and management capabilities he should make his best in management related career.

Self audit is a key role in determining your success in the career of your choice and the opportunities you need to avail, so don't forget to have it before planning to pursue a career.

Energy Auditing Training - Why Seven Trends Make it Just Right For Goldilocks

Goldilocks says energy audit training is "just right" for her - and for her husband. What is so "just right" about it? Well, it's much more than the chair, the bowl of porridge and the bed.

Becoming an energy auditor builds on at least seven growing trends and opportunities that have come together to make this a low-risk, rewarding and lucrative occupation, or business. Lets have a look at why this is...

First, what do energy audits do?

Energy audit training equips the student with skills to help people with rising energy-cost problems that are growing as we speak. An energy assessment in a residential home, commercial or public building identifies where energy is wasted.

When acting on an energy audit report the building owner will on average save around 30% or more on their power bill.

Goldilocks trends and opportunities

These are the trends that Goldilocks finds so enticing:

Energy costs - your electricity bill and gas bill - are going up and will continue to go up. Rising fossil fuel costs and high renewable energy costs combine to make this an inevitable reality. Everyone needs to reduce their energy use! They want energy auditors to help them do that.
Climate change forces a reduction in greenhouse gas emissions globally.
Governments everywhere are offering generous incentives to have energy audits done to save their economies, both to save money and create new, green, jobs. A free energy audit anyone?
There are a 109 million homes and 5.6 million small businesses in the US alone, in need of reducing their energy cost to stay in their game competitively.
Energy audits for new buildings are already mandatory in some places, and this will increasingly happen.
Energy efficiency training may take only a short time in order to become a fully certified energy auditor, from a zero knowledge base in this area.
Training can be in face-to-face classes, or online career training, where the second option adds low-cost and convenience to other benefits of taking energy audit courses. Some energy audit training courses teach you how to set up as a small energy auditor business as part of their training.
I told you it's more than kept Goldilocks happy back in those days where the three bears' home did not run any gas or electricity!

Energy management is a buzzword like never before. In small business and big. One famous US beverage producer for example, committed itself to saving 5.6 million kilowatt hours by just replacing its lighting system in 24 of its facilities in 2009.

Self-employment is on the rise

According to a Yahoo, Hot Jobs article, energy auditors can earn between $70,000 and $106,000 per year. Not bad. So why is the US GDP still growing in the face of continuing job losses? Well, people are taking to becoming self-employed. 126,000 Americans did so in the last quarter of 2009.

Energy audit training is just one such opportunity in a rising "green" market. Many will take it in 2010 and beyond. It is not one of the best careers for the future. It is it now.

Dr Erik Leipoldt has long been concerned about the effects of global warming. In particular he uses his own experience in practical approaches towards alternate energy sources to survive and thrive in our environmentally disabled world. See http://www.alternate-energy-sources.com/home-energy-audit.html.

PCI DSS Certification - Is It Mandatory To Perform Third Party PCI Compliance Audit And PCI Scan?

PCI DSS certification stands for Payment Card Industry Data Security Standard. PCI Data Security Standard has been established by the top five credit card issuing companies, MasterCard, Visa, American Express, Discover and Japanese Credit Bureau, who took their individual security standards for online transactions and merged them into one, establishing the PCI Data Security Council at the same time. The Council is a self-regulatory body which updates the PCI DSS requirements from time to time, trains companies and issues training certificates for companies who then act as PCI Audit executors, and PCI Qualified Security Assessors QSA.

As the online threats multiply in the direction of where the money is (online), the original 12 rules of PCI DSS compliance has evolved and today, as some affected merchants like to say, the 12 rules have over 200 sub-rules that are difficult to interpret, and correspondingly difficult to fulfill. It likely involves annual reporting by a qualified assessor, QSA, and quarterly scanning of outward-looking internet connections by a ASV, Approved Scanning Vendor. Both of which translate to additional costs to the merchant who must undertake the PCI Data Security Standard certification compliance.

So if you are a merchant processing online or point of sale transactions using credit and debit cards, the question comes up, is it mandatory to perform a PCI compliance audit and a PCI scan through third parties?

We'll point out here the two possible routes for a merchant to avoid costly third party PCI DSS audits and PCI scans and still be PCI compliant. They are: Have fewer than 20,000 payment card transactions in a year, and, Get someone from the company PCI DSS Audit qualified, have them become an ISA, Internal Security Assessor. We will talk about the current PCI DSS 2.0 version.

Have fewer than 20,000 payment card transactions per year

If you are relatively small merchant with fewer than 20,000 transactions in a year, you will be able to fulfill the security requirements by doing an internal security audit and simply fill out a Self-Assessment Questionnaire. There are several types of questionnaires. You can work with your "acquirer", or the bank through which you are processing your payment card payments to determine which questionnaire is right for you and what are the deadlines for submitting them.

Have someone from within your company PCI DSS Audit qualified

On the opposite end of the spectrum, if you are a large merchant, or a large online service organization, and you have more than 20,000 transactions per year, you can avoid hiring a third party PCI DSS Qualified Security Assessor by simply sending one of your IT professionals to one of the PCI DSS standard compliance seminars to become qualified as an Internal Security Assessor, thereby removing the need for external PCI Audits. The PCI data security standard checklist audits can from now on be done in house by an ISA. ISAs must be re-certified every year, and the company can now perform their own security audits and still stay PCI compliant.

For more information on the details of PCI DSS compliance see the PCI Compliance section on the site http://PCIscanning.org.