A magnetic assembly for detection and authentication of magnetic documents. The magnetic assembly includes a permanent magnet (PM), first and second magnetically soft high permeability pole pieces shaped to form a tapered, variable gap size magnetic circuit with the permanent magnet. The PM is located at a first gap between the first and second pole pieces. A magnetoresistive (MR) sensing element is located at or near the center of a second gap between said first and second pole pieces. The second gap and MR sensing element are proximate a magnetic document to be sensed.