Large companies still run the gratest risk of being audited. But their audit risk has declined in recent years, while the risk for smaller firms has risen dramatically.

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Percentage of Corporations Audited, by Size of Assets*
1986 1987 1988 1989
Less than $50,000 0.7 0.5 0.5 1.0

$50,000 to $99,999 1.4 0.9 0.8 1.8

$100,000 to $249,999 1.4 0.9 0.9 1.7

$250,000 to $499,999 1.5 0.9 0.8 1.7

$500,000 to $999,999 2.0 1.4 1.1 1.7

$1 million to $4,999,999 5.1 3.4 2.6 2.8

$5 million to $9,999,999 13.9 9.1 7.6 9.4

$10 million to $49,999,999 25.9 18.8 16.1 17.2

$50 million to $99,999,999 47.6 42.9 31.3 30.3

$100 million to $249,999,999 71.1 63.3 43.8 41.8

$250 million and greater 78.1 74.9 63.7 64.2

* Assets as shown on balance sheets.

Source: Internal Revenue Service

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