First time post a reply here, hope it's helpful...
This is a tough match the flaw question, mostly because of the many tempting answer choices.
The stimulus commits two flaws. 1) it takes the conclusion about a sample to indicate something about the entire group. We know nothing about whether the audit look through a representative data/information that the firm supplies. 2) it takes the lack of evidence to prove a wrong as if wrong doesn't exist. Just because there's no indication of tax avoidance doesn't mean tax avoidance doesn't exist.
Then, it's time to look for answer choice that commits most similar flaw(s).
A can be eliminated because it's about a different flaw. A's flaw is taking something from the past and make conclusion about the future.
B can be quickly eliminated because it's also about a different flaw. B's flaw is assuming a certain characteristic pertaining to the group is also true for a certain individual that belongs to the group. Since the stimulus doesn't have any group/individual element, B is irrelevant.
C and D can be eliminated because both of their conclusions are different from the one in the stimulus. C concludes student's apathetic attitude based on an unrepresentative sample of student's essays. D concludes education quality of the district based on an unrepresentative sample of schools' need for building repair. Unlike the stimulus, which directly address the tax avoidance problem in the conclusion, C and D are not similar to it.
E is the correct answer because it commits both flaws. 1) index of the book is hardly a good and thorough representation of the entire book, much like the the firm's tax info that is supplied to the tax auditor
2) the examination hasn't found reference to critics doesn't mean it's not there, perhaps it's a careless examination or a quick scan.