Tax audits expected to grow.

As governments seek additional revenue, some 30 percent of more than 500 respondents polled during a recent KPMG Tax Governance Institute webcast identified the possibility of a tax audit as their No. 1 risk.

"Corporate tax executives are bracing for a round of heightened regulatory scrutiny," said Hank Gutman, principal at KPMG and executive director of TGI.

He added: "In difficult economic times, tax professionals can play a critical, strategic role for their enterprises."

Companies are also seeking to improve cash flow, the survey found. In fact, identifying and increasing potential use of tax refunds, credits and incentives have been the top tax areas of focus by companies in the past six months, said 37 percent of respondents.

Among other key findings:

* During the past six months, most companies (47 percent) kept tax department resources about constant, with 28 percent reporting a decrease in their in-house tax resources.

* Sixty-nine percent view tax-risk management as an integral part of their organization's ERM strategy.

* Most companies (51 percent) said that reporting by the company's tax function to the board and audit committee has remained about the same; for 18 percent it's increased.