Agent skill

audit-risk-benchmarking

Compare entity financial ratios against ATO small business benchmarks to assess audit probability

View SKILL.md on GitHub Repository
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Install this agent skill to your Project

npx add-skill https://github.com/CleanExpo/ATO/tree/main/.agent/skills/audit_risk_benchmarking

SKILL.md

Audit Risk Benchmarking Skill

Compares a taxpayer's financial ratios (expense/income, labour costs, rent, motor vehicle) against ATO-published small business benchmarks for their ANZSIC industry code. Generates a risk profile without recommending behaviour change.

When to Use

  • Assessing ATO audit probability before lodgement
  • Identifying expense ratios that deviate from industry norms
  • Preparing documentation for items outside benchmark ranges
  • Pre-engagement risk assessment for new clients
  • Annual compliance health check

Key Principle

ATO benchmarks are DESCRIPTIVE, not NORMATIVE. Being outside a benchmark is NOT illegal. This skill assesses probability, never recommends adjusting legitimate figures to match benchmarks.

Benchmark Ratios

Ratio Calculation Source
Cost of sales Cost of sales / Total income ATO Small Business Benchmarks
Total expenses Total expenses / Total income ATO Small Business Benchmarks
Labour costs Wages + super / Total income ATO Small Business Benchmarks
Rent Rent expense / Total income ATO Small Business Benchmarks
Motor vehicle Motor vehicle / Total income ATO Small Business Benchmarks

Engine Reference

  • Engine: lib/analysis/audit-risk-engine.ts
  • Function: assessAuditRisk(tenantId, financialYear, options)
  • Output type: AuditRiskAssessment — includes risk factors, benchmark comparisons, and recommendations
  • Database: audit_risk_benchmarks table stores cached benchmark data per industry code and FY

Data Sources

  • ATO Small Business Benchmarks: ato.gov.au/Business/Small-business-benchmarks
  • ATO Compliance Focus Areas: Published annually
  • Industry codes: ANZSIC 2006 classification

Legislation

  • TAA 1953, s 263-264 — ATO access and information powers
  • TAA 1953, s 8C — Record keeping obligations

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