IFTA/IRP Audit Workshop Improving your Audit Process IFTA Closing/IRP Exit Conference.
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Transcript of IFTA/IRP Audit Workshop Improving your Audit Process IFTA Closing/IRP Exit Conference.
IFTA/IRP Audit Workshop
Improving your Audit ProcessIFTA Closing/IRP Exit Conference
Presenters
• Kristie Zanis – New Hampshire• Bob Weber – Connecticut• Don Williams - Idaho
IFTA Closing Conference
What is required?
IFTA Closing Conference (A650.100)
• The closing conference may be:– In person,– By telephone,– In writing (by fax, email, or snail mail).
• It must communicate:– Preliminary findings with penalty and interest,– Recommendations for improvement,– Rights to appeal,– Who gets the audit report.
IFTA Closing Conference (A650.200)
• An audit conducted in accordance to R1210:– No closing conference is required, but– The auditor must document why no closing
conference was held.• R1210 allows an assessment, when the
licensee:– Does not file a return,– Does not provide records,– Does not keep records showing true liability.
IRP Exit Conference
What is required?
IRP Exit Conference (APM 404)
• An exit conference should be held to:– Review identified, documented audit issues,– Preliminary findings.
• Auditor must document conference with:– Overview of the post Audit process,– Recommendations for improvement,– Rights of appeal,– Who gets the audit report.
• If no conference possible, document why.
Planning your Closing Conference
• Prepare for the closing conference– Review the file and draft report (be prepared)– The audit findings:
• What issues are there?• Prepare an Agenda to help guide you through the
conference.• What will the licensee/registrant ask?
• Express the findings– Clearly.– Without judgment.
Exit Meeting Purpose
• To provide the Registrant/Taxpayer with an understanding of the contents of the draft report and any concerns that may not be set out in the report.
• Help avoid any misunderstanding or misrepresentation of facts by providing the auditee the opportunity to clarify specific issues and express their views on significant audit findings & recommendations.
Effective Closing/Exit Conference
What can you do to ensure your conference is effective and successful?
Effective Exit Meeting
• Meeting should be open and courteous.• Summarize what was done.• Outline significant audit concerns &
recommendations. • Provide justification for conclusions &
recommendations.
Effective Exit Meeting
• Highlight any audit concerns which have already been addressed/corrected.
• Be willing and able to discuss all matters in whatever detail is necessary.
• Be sure all significant matters have been discussed so the report contains no surprises.
Principles for Communication
• Be curious, positive, and patient.• Be an active listener.
– Ask questions. (Open/Closed)– Respectfully acknowledge opinions.– Restate answers by paraphrasing.– Be friendly and approach the audit in a positive
manner.
Principles for Communication
• Be confident, however be careful not to sound arrogant or aggressive.
• Be able to give and receive Feedback.• Be clear and concise, provide your message in
as few words as possible.• Avoid interrupting the respondent.
Case Study
Case Study: Audit Findings
• Licensee/Registrant with three locations.• Single IFTA reported from central location.
• All vehicles are single fuel type (DSL).• IFTA travel: AAA, CCC, & DDD.
• Multiple registration records show:• Three registration accounts.• Vehicle weights from 26,000 lbs. to 80,000 lbs. GVW. • IRP travel: AAA, BBB, CCC, & DDD.
• Assume conference is with the authorized company representative.
Closing Conference Case Study
• Distance Summary Error:– The auditor found no trip records for BBB. – All fuel was purchased at local fueling station across
the street from Location 3 headquarters.– Location 3 had other trucks registered for AAA
travel plus the IRP trucks registered for AAA & BBB.
AAA BBB CCC DDD TotalRptd IRP 255,653 208 11,978 58,164 326,003
Rptd IFTA 260,601 0 9,930 58,670 329,201
Difference -4,948 208 2,048 -506 -3,198
Closing Conference Case Study
• Fuel Summary Error:– All fuel is purchased in AAA at Location 1, 2, or 3
headquarters.– Fueling station is across the street from the various
location head quarters.– Vehicles return each night to fleet headquarters.
AAA BBB CCC DDD TotalFleet Gas 1,724 0 0 0 1,724Fleet Dsl 10,761 0 0 0 10,761
Total 12,485 0 0 0 12,485
Rptd Dsl 11,673 0 0 0 11,673
Closing/Exit Conference
“The nine most terrifying words in the English language are, ‘I’m from the government and I'm here to help.’ “
Ronald Reagan
Reference
• Dale Carnegie, How To Win Friends And Influence People
• Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler, Crucial Conversations: Tools for Talking When the Stakes are High
References
• http://www.helpguide.org/mental/effective_cmmunication_skills.htm
• http://www.mindtools.com/pages/article/newTMC_88.htm
• http://skillsyouneed.com/ips/questions-types.html
• http://jobsearch.about.com/od/skills/qt/communication-skills.htm