The objective of such a review is for a company to determine before or during an audit whether they may have some errors in their favor that might lead to a refund. As noted, the state auditor is generally testing purchases to determine the amount of unreported purchases subject to use tax. A “reverse audit” takes a more holistic approach by identifying under and over payments of tax as well as the root cause of those errors. The following text describes at a high level the primary steps of a reverse audit, and why your company might benefit from one
Source: taxconnections.com