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The IRS isn’t going through all tax filings with that level of detail. If I were to guess, 90% are accepted at face value, 10% are flagged for some irregularit

• bluGill 2y ago
  It isn't just the IRS, every large company hires independent auditors to go through the books and report anything "funny", they generally are required to report illegal findings to the police along with reporting legal things that are against the companies interest.
  • refurb 2y ago
    That's not how it works. Independent auditors check to see if a company's accounting is following GAAP accounting standards (so that a statement can be put in the SEC filings). They don't comb through each payment in detail (corporations can have millions of them each year). And if they find things, they tell the company to fix it or report any deviation from GAAP standards. But much of it is dependent on good faith of the company along with some spot checking to see if their accounting processes line up with what they said they do. And plenty of companies who have been found to commit fraud have gotten the "thumbs up" during their "independent audit". It gives you a sense as to how cursory their audits are.