INFLUENCE OF TAX AUDIT ON TAX COMPLIANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN EDO STATE

The study focused on the effect of tax audit on compliance of Small and Medium Scale Enterprises (SMEs) in Edo State, Nigeria. Specifically, the study examined the effect of Desk audit, Field audit, Registration audit, on the tax compliance of the SMEs. This study used a descriptive survey research design, in which 305 of the SMEs were sampled using stratified random sampling. The primary data was gathered through a structured questionnaire, and multiple regression analysis techniques were used to analyze the data. The results showed that the field audit and registration audit, had a significant positive impact on tax compliance while the desk audit had no significant impact. Based on the results of the study, the traditional audit and investigative tools are still essential in improving tax compliance with SMEs. The recommendations range from enhancing tax officials' capacity to increase the efficiency of tax audit procedures and tax enforcement. The study contribute to knowledge as it brings together various audit mechanism in compliance research in the Nigerian SME environment and makes it available for policy formulation and effective tax administration