Audit Assignment ReviewColorado Department of Revenue

ACCT 4540/5540

Table of Contents

1 Audit Assignment Review

Prepared For: Prepared For: Tammy Sorensen, Senior Auditor: tsorensen@spike.dor.state.co.us Jim Marlatt, Professor: James.Marlatt@colorado.edu

Prepared By:Prepared By:Bishop Bhandari: bishop.bhandari@colorado.edu; 720-270-1066Brandon Dyer: b randon.dyer@colorado.edu ; 303-489-9101Daniel Deshe: daniel.deshe@colorado.edu; 614-595-5865Torrence White: torrence.white@colorado.edu; 303-478-5661

Project Charter......................................................................................................................... 3

Project Purpose........................................................................................................................ 5

Objectives................................................................................................................................... 5

Roles and Responsibilities................................................................................................... 6

Project Scope............................................................................................................................ 9Project In-Scope:................................................................................................................................ 9Project Out-of-Scope:........................................................................................................................ 9

Assumptions........................................................................................................................... 10

Deliverables............................................................................................................................ 11

Milestones............................................................................................................................... 12

Work Breakdown Structure.............................................................................................. 13

Risk Management Plan........................................................................................................ 14

Stakeholder Analysis........................................................................................................... 17

Cost Benefit Analysis........................................................................................................... 19

Research.................................................................................................................................. 22

Plan for Further Research.................................................................................................. 28

Storyboard.............................................................................................................................. 29Premise............................................................................................................................................... 29Core Conflict...................................................................................................................................... 30Tension............................................................................................................................................... 30Turning Point................................................................................................................................... 30Resolution......................................................................................................................................... 30

Appendix.................................................................................................................................. 30Research............................................................................................................................................. 30

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Project CharterFormat taken from CUAccelerate.comProject Purpose: The purpose of this project is to increase audit quality and efficiency by creating a more efficient audit assignment process based on performance while raising motivation and creating more incentives for better performance on audits without increasing the current costs of the audits. Prioritized Measurable Objectives:Create a standardized audit assignment process throughout the State of Colorado Department of Revenue.Eliminate the current seniority based audit assignment process and replace it with a process based on performance.Create a standardized performance review process that rates an auditors performance based on various competency factors.Create a system to improve the efficiency of assigning a second agent to the audits when more than one agent is necessary.Suggest various motivational techniques and intrinsic incentives to help managers keep the agents motivated.Project Manager Authority: In order for this project to be successful, the project manager will need the authority to:Determine the project approach, including milestones; deliverables; and schedule.Determine project resource requirements, including funding, people and equipment.Determine how to allocate/reallocate project resources throughout the project.Fire project team members.Identify and communicate directly with all project stakeholders as the project manager sees fit.Determine which recommendations to implement if the project sponsor/project stakeholders do not provide this feedback within three business days of it being requested.The project manager does not have the authority to do the following without first getting the project sponsor’s approval:Cancel the project.Increase project funding beyond what is approved in the project plan.Extend the overall project timeframe beyond six months.Project In-Scope:Develop audit assignment process.Promote the new audit assignment process within the State of Colorado Department of Revenue.Increase audit quality and efficiency by assigning each agent an audit that best fits an agent’s skill set.Improve the performance review process.Keep motivation and morale high while implementing the new processes.Provide intrinsic benefits to employees.Project Out-of-Scope:Create a new training process.Improve audit selection process.

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Increase costs of audits.Recruit new auditors.Provide monetary benefits to employees.Project Assumptions:A culture of seniority exists within the department that is kept in place by the agents with seniority who have no incentive to change assignment process.The biggest incentive for the senior agents is their ability to have first choice of audit they work on.Managers are unable to base performance on the money an audit brings in to the department.Managers prefer to allow agents to create a list of audits they would like to be assigned to because it makes the assignment process easier for them.Incentives for new auditors are low compared to working with a non-government accounting firm.Expectations of an audit are not clearly defined to an agent.Many new agents are not receiving the proper training.New agents are having trouble learning from the senior agents.Some agents are selecting their audits based on destination rather than skill sets.No standardized process for assigning audits currently exists.Deliverables:Analysis of the current audit assignment process.Analysis of current performance review process.Recommendations on audit assignment process and how to integrate the new process including second agent assignment.Recommendations on how to improve performance review process and how to integrate the new process.Recommendations on how to improve motivational techniques and offer new incentives.

Approved by:Project Sponsor: Date:

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Project Purpose

The purpose of this project is to increase audit quality and efficiency by creating a

more efficient audit assignment process based on performance while raising

motivation and creating more incentives for better performance on audits without

increasing the current costs of the audits.

Objectives

Create a standardized audit assignment process throughout the State of

Colorado Department of Revenue.

Eliminate the current seniority based audit assignment process and replace it

with a process based on performance.

Create a standardized performance review process that rates an auditors

performance based on various competency factors.

Create a system to improve the efficiency of assigning a second agent to the

audits when more than one agent is necessary.

Suggest various motivational techniques and intrinsic incentives to help

managers keep the agents motivated.

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Roles and Responsibilities

Each week team members are assigned tasks that they are responsible to complete

by the following meeting. Tasks have been assigned on a volunteer basis and are

assigned equally throughout the team.

Role: Responsibilities:

Project Sponsor- State of Colorado Department of Revenue

Approve project charter. Provide resources necessary to

complete project. Communicate any department

changes that may impact the project.

Help project team resolve any problems that are encountered during the project.

Project Manager- Bishop BhandariMyers Briggs Personality Analysis: Personality: ENTJ

ENTJs have a natural tendency to marshal and direct. This may be expressed with the charm and finesse of a world leader or with the insensitivity of a cult leader. The ENTJ requires little encouragement to make a plan. ENTJs are decisive. They see what needs to be done, and frequently assign roles to their fellows. When challenged, the ENTJ may by reflex become argumentative. ENTJs are capable of living on a higher plane, if you will, and learning to value individuals even above their principles. The above dynamic suggests less individuation. ENTJs have extraverted sensing but introverted feeling.

Some of the famous ENTJs:Franklin D. RooseveltSteve JobsJim Carrey

Develop project plan and get approval from project sponsor.

Communicate group questions with Jim Marlatt, project sponsor, and project mentors.

Communicate information received from sponsor, Jim Marlatt, and mentors with the project team in a timely manner.

Assist team in determining roles and responsibilities.

Provide research from companies that get audited.

Provide research on performance processes.

Ensure team is on track to meet project deadlines.

Assist in creating survey to send out to the state of Colorado auditors.

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Project Manager- Daniel DesheMyers Briggs Personality Analysis: Personality: ESTJ

Supervisors are highly social and community-minded, with many rising to positions of responsibility in their school, church, industry, or civic groups. Supervisors enjoy and are good at making schedules, agendas, inventories, and so on, and they much prefer tried and true ways of doing things over speculation and experimentation. Supervisors keep their feet firmly on the ground and would like those under their supervision to do the same, whether employee, subordinate, spouse, or offspring. Supervisors have no problem evaluating others and tend to judge how a person is doing in terms of his or her compliance with, and respect for, schedules and procedures.

Some Famous ESTJ’s include:Judge JudyGeorge WashingtonSandra Day O’ ConnorVince Lombardi

Develop project plan and get approval from project sponsor.

Assist team in determining roles and responsibilities.

Take meeting minutes and communicate them with the team in a timely manner.

Provide research from various state departments of revenue and state auditors.

Ensure team is on track to meet project deadlines.

Create email to send out to the state department of revenues.

Assist in creating survey to send out to state of Colorado auditors.

Team Member- Brandon DyerMyers Briggs Personality Analysis: Personality: ENJF

ENFJs enjoy organizing group activities and tend to take their commitments seriously. In general, they are reliable and do not like to disappoint others. As team players and project leaders, they have a gift for rallying their players, focusing on what is being done right and each member's strengths. They carry conversations well, finding common ground with their speaker. They tend to find the correct and gracious way to respond in any given situation, no matter how tense or uncomfortable it is.

Develop project plan. Assist team in determining roles

and responsibilities. Provide web-based research

(including Protivity website) for project.

Assist in developing new audit assignment process.

Assist in creating survey to send out to state of Colorado auditors.

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Team Member- Torrence WhiteMyers Briggs Personality Analysis: Personality: ISFJ

ISFJ’s are Protectors whose primary interest is in the safety and security of those they care about. For their part, Protectors value tradition, both in the culture and in their family. Protectors prefer to make do with time-honored and time-tested products and procedures rather than change to the new. They are not as outgoing and talkative as the Provider Guardians [ESFJs], and their shyness is often misjudged as stiffness, even coldness, when in truth Protectors are warm-hearted and sympathetic, giving happily of themselves to those in need. Their reserve ought really to be seen as an expression of their sincerity and seriousness of purpose. The most diligent of all the types, Protectors are willing to work long, hard hours quietly doing all the thankless jobs that others manage to avoid. Protectors are quite happy working alone; in fact, in positions of authority they may try to do everything themselves rather than direct others to get the job done. They also know better than any other type the value of a dollar, and they abhor the squandering or misuse of money.

Some Famous ISFJ’s include:Mother TeresaJimmy StewartTsar Nicholas II

Develop project plan Provide research from CPA firms. Assist in developing new audit

assignment process. Assist in creating survey to send

out to state of Colorado auditors.

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Project Scope

Project In-Scope:

Develop audit assignment process.

Promote the new audit assignment process within the State of Colorado

Department of Revenue.

Increase audit quality and efficiency by assigning each agent an audit that

best fits an agent’s skill set.

Improve the performance review process.

Keep motivation and morale high while implementing the new processes.

Provide intrinsic benefits to employees.

Project Out-of-Scope:

Create a new training process.

Improve audit selection process.

Increase costs of audits.

Recruiting new auditors.

Providing monetary benefits to employees.

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Assumptions

Assumptions have been made based on the client packet, client presentation,

questions answered by the client through email, and research from other companies

and states. These assumptions include:

A culture of seniority exists within the department that is kept in place by the

agents with seniority who have no incentive to change assignment process.

The biggest incentive for the senior agents is their ability to have first choice

of audit they work on.

Managers are unable to base performance on the money an audit brings in to

the department.

Managers prefer to allow agents to create a list of audits they would like to be

assigned to because it makes the assignment process easier for them.

Incentives for new auditors are low compared to working with a non-

government accounting firm.

Expectations of an audit are not clearly defined to an agent.

Many new agents are not receiving the proper training.

New agents are having trouble learning from the senior agents.

Some agents are selecting their audits based on destination rather than skill

sets.

No standardized process for assigning audits currently exists.

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Deliverables

Analysis of the current audit assignment process.

Analysis of current performance review process.

Recommendations on audit assignment process and how to integrate the

new process including second agent assignment.

Recommendations on how to improve performance review process and how

to integrate the new process.

Recommendations on how to improve motivational techniques and offer new

incentives.

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Milestones

September 9:

Determine project purpose.

Determined some roles for each team member.

Came up with project premise, core conflict, and tension.

September 16:

Developed project plan and approach.

Started initial research.

Updated premise and conflict.

September 23:

Second round of research was due.

Split up deliverable sections.

September 30:

Initial individual deliverable work is due.

October 4:

Developed most of the first deliverable.

October 7:

First draft of deliverable is due.

October 14:

First deliverable due in class.

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Work Breakdown Structure

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Risk Management Plan

Risks associated that would inhibit the State of Colorado Department of Revenue in

achieving their value-based objectives include:

Matching skill sets with the complexity of the job:

The practice of allowing senior members to first choose audit works

and allow 10 preferred audits to the auditors would bring risk of uneven

audit assignment. It is highly possible that the auditors would choose some of

the jobs that they are not qualified for, and on the other side some auditors

would choose some very easy job that does not challenge them at all. This

way Colorado Department of Revenue would risk efficiency by not using

right manpower at right place. A novice auditor assigned to a highly complex

job would result in more error, more audit hours and greater chance of

lacking the independent judgment.

High employee turnover and no attraction for quality auditors:

Due to lack of sufficient training and growth opportunity and seniority

system, Colorado Department of Revenue may face high employee turnover

at least among new employees. It is not unusual to see low job satisfaction

among associate level employees. The seniority system would not allow them

to give any input on the existing system. People habituated of doing the audit

process in their own way does not want to change that would make life easy

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for all people, especially fresh starters. Also, they do not have any incentive

that would encourage new graduates to work for them instead of some

public accounting firms. Colorado Department of Revenue does not have a

defined set of career path that would encourage bright college graduates.

Untrained auditors at work:

Colorado Department of Revenue lacks training programs and

incentives for their auditors to be updated with the economy and what their

taxpayers are doing differently. Accountants and auditors for the taxpayers

are mostly on top of all current issues and regulations, so when revenue

agents go for an audit they would lack the self-esteem that they are more

knowledgeable than other auditors and CPAs of those industries. This can

significantly affect the revenue agents’ decision making process and result in

poor audit quality.

Uniformity in the audit process and recommendation to the taxpayers:

With tradition of doing things that the senior staff feels comfortable

with, brings difference in the audit quality and recommendations that you

can provide your taxpayers for compliance. Standardization of the audit

assignment process would benefit all the parties – Colorado Department of

Revenue, auditors and the taxpayers. Lack of standardized audit assignment

process keeps new employees from doing their work efficiently as they do

not know exactly what to do. With the lack of uniformity it would be hard to

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assign audit to the agents based on their skill sets. They would have to spend

more time in going over last year audit report to make better judgment on

assignment. This would lead to inefficiency.

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Stakeholder Analysis

Name Role Interest Influence

Expectations Ways to Manage Expectations

Auditors Users High High Be efficient at their work. No longer have first audit choice based on seniority.

Now will be assigned to audits based on skills and experience.

Auditor skills identified and evaluated by performance reviews.

Will receive more intrinsic incentives to keep motivation high while the change in system is made.

Companies Audited

Tax Payers Med Low Abide by the tax laws. Have quality auditors audit

them.

Will have auditors specifically suited for their company.

Audits will take less time to complete as a result of better qualified auditors being assigned.

Knowledgeable auditors will be available for questions as opposed to auditors less suited for different types of audits.

Managers Users High High Want their agents to be efficient without having to compromise with their own comfort zone.

Make sure that the managers and the agents are involved throughout the process so that the transition would be smooth.

Department of Revenue

Users High High An efficient audit assignment process.

Increase agents’ efficiency and accuracy.

Collect the correct amount of tax revenue.

Fewer hours used to complete audits because of more efficient assignment.

Decreased level of incoming inaccuracies.

Creation of organized auditor workforce.

Transitional period when the department must adjust to the new system.

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Future Employees

Users Med Low Good learning environment. Will enter into a workplace with a clear system for audit assignment.

More effective use of skills and experience.

New employees enter into a motivating work environment.

Group Members

Consultants High Med Provide recommendations based on research to increase Colorado Department of Revenue’s overall efficiency.

Group members’ class grades are based on the project.

Increase self-esteem if process is implemented.

Jim Marlatt Facilitator High High Make sure the project objectives are accomplished on time.

Communicate with Jim constantly and make sure that the group is meeting its milestones.

Cost Benefit Analysis

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Cost Benefit Analysis: These are some of the cost-benefit scenarios that the Colorado

Department of Revenue would have to consider in term of changing their work

system.

Implementing new audit assignment process:

Costs:

It requires change in mindset of the senior managers as most seniors are

very resistant for a change.

It may reduce motivation for some agents as we have assumed that the

biggest incentive for the senior agents is their ability to have first choice of

audit they work on.

It takes some working time of all the employees at least during the

implementation phase of the new standardized process.

Benefits:

The new audit assignment process will increase the overall efficiency for the

audit department.

It helps in promoting better audit quality by matching agent’s skills with the

audit.

The standardized system would treat all agents and manager equally, as it

would not consider preferences. This would bring the feeling of inclusiveness

among junior agents and encourage them to work hard.

It would increase the effectiveness of the performance evaluation process.

Providing intrinsic benefits to the agents:

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Costs:

The Colorado Department of Revenue may have to incur minimal monetary

cost once in a while.

It changes the culture of Colorado Department of Revenue so people might

not feel comfortable with the new culture, at least at the beginning.

Benefits:

Providing intrinsic benefits motivate agents in doing better job. It would

motivate agents to perform above and beyond their job responsibilities.

It brings the feeling of self esteem. Recognizing the good work provides them

with the incentive to keep that up. It is obvious to feel encouraged and

respected when praised by others.

Standardize performance review process:

Costs:

Putting standardized performance review process need some changes in

their information system. It may be possible that Gen Tax could incorporate

some of the elements like performance report section for each audits

performed, that would be used in providing performance review. It might

increase the cost of implementing that software.

It takes time and patience during the changing process for all employees. It

can be more challenging for the managers to adapt to the new system and

provide performance review based on new criteria.

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Colorado Department of Revenue would incur monetary and non-monetary

costs in providing training programs to its employees.

Benefits:

The new system will integrate the performance review process with the

audit process.

It provides agents with great feedback to improve their efficiency and help

them set their goals.

It allows agents to compare the actual results with the pre-set goals at the

end of each month.

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Research

Research Example 1-2:

Research Summary: Interview with Auditors

Focus: Assignment Process

Interview 1

William Collier- chief auditor for Columbus under state auditor

Audits are assigned based on a geographical break up of region, and split into teams.

Each team consists of 7 people: 1 senior auditor, a few managers and a few staff

auditors. Every 6 months a book of business is compiled and each team is assigned

new audits based on the performance of the team in the past. Auditors have no say

in which audits they are assigned and seniority is not granted. The current process

is efficient and auditors are happy with the process.

Interview 2

Shaun Sookram- Audit Manager Nebraska Department of Revenue

Audits are assigned based on the type of audit and the qualification of the auditors.

Auditors have no choice in the audits they receive. Performance is rated based on a

performance review process which uses feedback from companies and auditors and

each audit is graded based on a set of guidelines. Auditors are motivated with this

system and there has been no input that it should be changed. Audits are both in

state and out of state and typical travel time is up to 6 weeks a year.

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Research Example 3-5:

Research Summary: Company Research

Focus: Motivation, Performance Review, Audit Quality, and Motivating

Employees:

Employee Recognition

1) Employee Recognition: Make your employees feel proud of what they do.

Have awards like Auditor of the year for the auditors who demonstrate great

leadership or goes above and beyond their service requirement.

2) Create an environment where each employee recognize other employee:

Very minor things can make people feel great and encourage them to work

harder Some of the thing would be:

- Praise just by saying - “You did a really good job”

- Send a note to employee’s spouse or family to share the great work done

by the employee.

- Decorate employee’s workspace to show how proud you are of their

accomplishments.

3) Make employee feel challenged and stretched by giving them new jobs. Don’t

let them get bored with the same type of clients and work type.

Performance Review and Develop Employees’ Potential:

1) Determine review criteria at the very beginning. Provide detail information

about how the employees would be reviewed. That would allow employees

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to achieve the performance level they want to get. (Select at least one audit

each month to provide feedback.)

2) Let auditors set their goals at the beginning of the year. Also let them

provide their evaluation by themselves with reasoning. The immediate

senior would review that.

3) Enable a system that would allow managers to provide constructive feedback

on the employee’s work. Provide managers with the ability to assign

employees with the trainings that they think would be helpful for their

employees. Training can be on wide range of topics like leadership,

competency, project management, technical expertise.

4) Provide score based on each category of evaluation. Let employees know

why they are not able to do well. If they are getting 5 out of 5 meaning they

are exceeding expectations, try to research why is that happening? May be

the employees are not challenged anymore. May be it is time to move the

employee to a different area of the work, audit more complex taxpayers.

5) Encourage managers to provide class on their subject of expertise time and

often. That would allow new employees exposure to wide variety of works

with the department.

Audit Quality from a taxpayer’s perspective:

1) They are well informed of the audit scope and audit plan. They want to

provide the exact information needed by the auditor. They are busy as are

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the auditor so they don’t want to spend time providing information to the

auditors that they do not need.

2) Provide a detail report of the audit to the tax payers, along with some of the

internal control suggestions that they can use to improve their process and

would save time for them as well as auditors for the next audit.

3) Auditors are expert on the matter that they are auditing. So that the

management would not be bothered time and often by some minor

questions. So, it is essential to have at least one auditor on field who knows

the industry they are auditing. It also relates to standardization of audit

process for industry specific clients.

4) Audits are completed in a reasonable time. They don’t want audit to be

hanging for a while. So the audits should be completed on the basis of date

they are opened. Both parties would be better off.

Research Example 6-7

Research Summary: Interviews with CPA Firms

Focus: Audit Assignment and Performance Review.

Audit Assignment:

Both auditors said that audits are assigned and that the auditors do not get to pick

which audits they go on. A lot of the time the type of audit the agents are assigned is

based on the type of industry the taxpayer is in. Some auditors start to specialize in

different types of audits as they progress throughout their careers.

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Opinion of current system:

Both auditors said that they were satisfied with the current process of audit

assignment. Neither could understand why you would let the auditors choose. Both

agreed that audits should be assigned according to skill and experience. They said

this was the most efficient way.

Performance review:

One auditor said that they did a performance review. Factors such as time to

complete the audit, audit completeness, and audit accuracy were important ratings

in performance evaluation. Reviews are communicated to auditors and are taken

into consideration when assigning future audits. The other auditor stated that his

firm didn’t do performance reviews because his firm is pretty small. He did indicate,

however, that he knew that other CPA firms do.

Both firms do audits in and out of state and both interviewees have experience with

both.

Research Example 8-10:

Research Summary: Protivity Website Research

Focus: Audit Departments and Change Research

“Change Management in a Down Economy”:

This article states that changing processes within an organization can be difficult,

especially when the change is focused on profitability rather than the status quo.

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This article is relevant to this project because our proposal includes changes to the

current audit assignment process. The focus of the Colorado Department of

Revenue is on collecting the revenue that is due to them, which is comparable to the

profitability focus for other companies that this article references. The authors

believe that change can be transitioned into the organization by communicating the

new objectives with employees, which we will incorporate into our proposal.

“10 Big Things for Small Audit Departments”:

This article focuses on audit efficiency, process management, and recognizing the

skills each person brings to a team. The Colorado Department of Revenue is a

relatively small audit department with limited resources. This article will be used to

support our proposal to assign audits rather than have individual auditors choose

their favorites.

“Ways to Promote Positive Change in Your Audit Department”:

This article stated that change is especially difficult in audit departments because

the job of auditing attracts analytic and task-oriented people. These people are very

critical of change, so the article suggests that communication with employees is

important in having auditors understand the important of the change. It also

suggests that identifying inconsistencies and inefficiencies is important in reaching

the company’s objectives. Here, we have identified the audit assignment process as

that inefficiency and as we institute changes to that process, it is important that we

consider the affect the change will have on the auditors.

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Plan for Further Research

To further our current research, we are sending out an email with all of the

questions we need to the departments of revenue of all 49 other states. This email

will include basic questions about the department and questions such as; what

incentives do you give employees? Please explain your performance review system

and does it works? What type of training do you offer? Please explain the audit

assignment process and does this process work? Our hope is that we get at least 15

responses out of the 49 states by November 19, 2009.

Along with the email to the states, we will be presenting a survey to the current

agents and managers in State of Colorado Department of Revenue. This survey will

help us determine how new agents and senior agents alike feel about the current

assignment process as well as what changes they would like to see. The survey will

help us with our recommendations of how to fix the audit assignment process.

In addition to the new research, we will continue to talk to CPA firms about their

auditor assignment process and their performance review process and intrinsic

incentives they give. Also, we will continue to talk to people in industry about how

to improve the performance review process.

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Storyboard

Premise

Increase efficiency by utilizing best personal skills of auditors without

compromising their motivation while also improving the audit quality and speed.

Core Conflict

The current audit assignment process is inefficient because the best, most

experienced auditors are not always being assigned the audits they are most suited

for, however, changing the process may reduce the motivation of the agents.

Tension

If the audit assignment process is not changed then the department will not be able

to collect the correct amount of revenue as efficiently as possible and the lower level

agents will not be motivated to perform as strongly as possible.

Turning Point

Maintain the current audit assignment process or change to a new process while

offering new motivational techniques.

Resolution

By matching agents’ skill sets with the types of audits and providing intrinsic

benefits to the agents, audits will be done efficiently and motivation will be high.

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Appendix

ResearchExample 1-2Interview 1.William Collier- chief auditor for Columbus under state auditor- 1800-443-9275 ask for Bill.

1. What level auditors do you have? - Staff auditor, Audit manager, and senior auditor.

2. How is each audit assigned? - Geographical break up of region, each team consists of 7 people: 1 senior, a few managers and staff auditors.

3. Are audits in state, out of state, or both? - In state4. Is assignment based on performance or seniority? - They have a book of

business each 6 months and each team is assigned based on their performance in the past. Seniority is not granted. They have a control in place to make sure people get appropriate audits.

5. Are the auditors happy with the system? - Yes, the qualified people get what they are most qualified for.

6. Is the current process efficient? - Yes7. Is it ok for someone from my team to contact you again? - Yes

Interview 2- Shaun Sookram- manager Nebraska Department of Revenue- 402-471-5751

1. Do you assign the audits to your auditors? - Yes I am a part of the group that does it.

2. What level auditors do you have? - Senior auditors and Auditors3. How are audits assigned? - They are based on the type of audit and

qualifications of auditors.4. Do the auditors have a choice in the which audits they perform? - No5. Are the auditors happy with this system? - Yes6. Are audits individual or businesses? - Both7. Are audits in state or out of state? - Both8. What is the typical travel time for an auditor? - We tell them up to 6 weeks,

typically 2 weeks out of state and 4 weeks in state.9. How is performance rated? - Based on our performance review process

which uses feedback from companies and auditors and each audit is graded based on a set of guidelines.

10. Are the auditors motivated with your way of assignment? - Yes they seem to be motivated; there has been no input from the auditors that it should be changed.

11. Is it ok for a member of my team to contact you again? - Yes

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