A well-structured audit program plays an important role in improving the effectiveness of tax administrations. In modern tax administrations the role of an audit program has extended beyond the mere verification of the reported taxpayer’s obligations. If managed properly, it encourages compliance and thus allows the tax administrations to collect the taxes more efficiently. Special emphasis will be put on deployment of indirect audit methods which go beyond a mere examination of a taxpayer’s books and records. This workshop will examine key factors that need to be in place when planning for an effective taxpayer audit program and will address the role of the tax audit within the compliance risk management process. A question of how to develop awareness and acceptance among those being audited in order to create a more favorable environment for voluntary tax compliance will also be explored.