A California sales tax audit is conducted by the California State Board of Equalization (BOE). The objective of the audit is to determine if you have paid the correct amount of sales taxes.
The main question the auditor is attempting to answer is: Did you report all gross receipts from sales of taxable personable property? Businesses that have cash transactions are often targeted for sales tax audits. You are required to provide records during the audit process.
How an Auditor Looks for Sales Tax Problems