IFTA AUDIT SUB COMMITTEE IFTA AUDIT MANUAL IFTA AUDIT SUB COMMITTEE

SUB-COMMITTEE MEMBERS Tony Dewell, BC Diana Kay, FL Gene Hall, VA Dan Young, MT David Nicholson, OK

CHARGE Review the current IFTA Audit Manual Look at reviewable standards. Look for clarity. Check context, does it belong in the manual? Check for application, is it still valid? In general, clean up the language.

PROCESS Through conference calls, we established: Understanding of the charge, Set responsibilities for each member, Timelines, Set the Final Destination.

HIGHLIGHTS We found duplication and/or redundancy. We found a lack of natural flow. No continuity. We found material that did not specifically apply to audit functions. We found that some language was unclear as written.

HIGHLIGHTS cont. The manual was restructured. The introduction was re-written to: Clarify the intent of the manual; Give direction to both the members and the Program Compliance Review Committee for reviewable requirements.

Cont. A200 General Auditing Standards Provides for: Auditor responsibilities; Auditor qualifications; and Planning and supervision.

Cont. A300 Jurisdiction Audit Requirements Jurisdictional Audit Programs Number of Audits required Audit selection

Cont. A400 General Auditing Guidelines Standard audit approach Sampling Status of records Location Inadequacy

Cont. A500 Audit Process Communication Internal Controls Reports Documentation Audit file content

Summary There has been no attempt by the sub-committee to change the intent of the manual. The manual has been reorganized to provide better reading and process flow. In the restructuring, sections have been combined which reduced the number of sections from 7 to 5. It has been recommended that language from A700 be moved to the Best Practices Guide.

STATUS The proposed changes have been provided to the Audit Committee for review. After review by the Audit Committee the document will provided either as a ballot or just for comments. Questions/Comments?