REVENUE MEMORANDUM ORDER NO. 6-2023 issued on February 9, 2023 prescribes the updated and consolidated policies, guidelines and procedures for BIR Audit Program.
        In general, all taxpayers are considered as possible candidates for audit. To cover such audit/investigation, electronic Letters of Authority (eLAs) or Tax Verification Notice (TVN), as applicable shall be issued.
           Mandatory Cases are transactions to which an audit is required as a condition precedent for the issuance of Tax Clearance, processing of claims for tax credit/refund and other cases as may identified by the Commissioner of Internal Revenue (CIR) as priority target for audit/investigation. The following shall be covered by this type of audit:

           Priority Audit Cases are cases which have been electronically selected by the IRIS-Audit Module based on prescribed selection criteria pursuant to identified risks that need immediate action. The prescribed selection criteria shall make use of information from filed tax returns and other pertinent tax information available in the BIR Systems and the selection code for these are
already embedded into the said module.
             Also covered under this category are audit cases that shall be handled by the VAT Audit Section (VATAS) and Office Audit Section (OAS) of the Assessment Divisions (AD), and Large Taxpayers VAT Audit Unit (LTVAU) under the Large Taxpayers Service (LTS). The execution of the “Run Audit Program” in the IRIS-Audit module, including the submission of the list of taxpayers to be audited, shall be the responsibility of the Assistant 3 Commissioner of the Assessment Service (ACIR-AS) and ACIR-LTS for nonlarge taxpayers and large taxpayers, respectively.
               Priority audit case can also be manually selected by the concerned Regional Director (RD)/ACIR-LTS but this has to be approved by the CIR. The selection code for these cases shall be “PCIR”.
                The Policies and Procedures on i) Issuance of eLA/TVN; ii) Assignment of Cases; iii) Conduct of Audit and Submission of Reports of Investigation; iv) Review of Audit Reports and Issuance of Termination Letter; v) Handling of Protests Against Tax Assessments; vi) Monitoring of Cases; vii) Issuance of Replacement eLA; and viii) Administrative Sanctions are specified in the Order.