CHAPTER 300 - AUDITING

(300)-100 [Quality Assurance Program]{.underline}

######## 100.1 [Overview]{.underline}.

This section sets forth the Treasury Inspector General for Tax
Administration (TIGTA) Office of Audit (OA) policy for the quality
assurance program.

As defined by the President's Council on Integrity and Efficiency
(PCIE), a quality assurance program is designed to assess whether work
is carried out in accordance with established policies and procedures
and prescribed standards. The quality assurance program also includes an
assessment of whether the work was carried out economically,
efficiently, and effectively.

Quality assurance is distinct from quality control. Quality control is
an inherent responsibility of line managers to ensure that their own
units and personnel are performing work that will meet the auditing
standards. A manager's review of an auditor's workpapers is an example
of quality control. Quality assurance is an evaluative effort imposed
and conducted by sources external to the units/personnel being reviewed
to ensure that the overall work of the organization meets standards.
This includes both internal reviews performed by independent TIGTA
employees and external reviews controlled by the PCIE. The pre-issuance
review of draft audit reports is an example of quality assurance.

100.2 [Policy]{.underline}.

The Deputy Inspector General for Audit (DIGA) is responsible for
overseeing implementation of an internal quality assurance program that
conforms to the standards of the Comptroller General and the PCIE.
Specific elements of this program include:

-   Internal quality assurance reviews performed for each Assistant
    Inspector General for Audit's (AIGA) office at least once every 3
    years in accordance with the quality assurance program established
    in this section.

-   Pre-issuance/review of all draft and final reports prior to approval
    and issuance by the DIGA to the Internal Revenue Service (IRS)
    Commissioner.

```{=html}
<!-- -->
```
-   An audit staff from the TIGTA to perform a peer review of other
    audit organizations at least once every 3 years.

-   An external peer review of TIGTA operations at least once every 3
    years.

TIGTA quality controls for audits and reports are described throughout
the TIGTA Operations Manual. [**Manual Sections
(300)-60**](../../300-60/chapter300-60.doc), Planning and Conducting
Audits, and [**(300)-90**](../../300-90/chapter300-90.doc), Reporting
Audit Results, deal with auditing (e.g., workpaper preparation and
reviews and referencing) and reporting policies and procedures.

######## 100.3 [Internal Quality Assurance Program Reviews]{.underline}. 

The internal quality assurance reviews are designed to provide the DIGA
with reasonable assurance that the work performed by the OA is being
carried out in accordance with the July 2007 revision to the generally
accepted government auditing standards (*GAGAS*) and established
policies and procedures. At a minimum, the quality control elements that
will be included in an internal quality assurance review include staff
qualifications, independence, and audit planning and execution. However,
the scope of the reviews may be expanded if mutually agreed upon by the
review team and the DIGA.

Like quality control, quality assurance is based on the principle that a
systematic monitoring and educational process is the most effective way
to attain high-quality performance. Thus, each office shall take
positive actions in response to significant deficiencies in quality
controls or compliance with standards.

**100.3.1** [Guidelines for Performing Internal Quality Assurance
Reviews]{.underline}. The internal quality assurance reviews will be
conducted in accordance with the *GAGAS* and use the auditing procedures
consistent with any other audit. The reviews are performed under the
direction of the DIGA. Templates for the engagement letter, audit plan,
and review checklist for the peer review can be found in the Audit Forms
tab in Word and in TeamMate. Copies of these templates are also posted
the OA intranet web page under ***Quality Assurance.***

The Director, Office of Management and Policy (OMP) will direct the
internal quality assurance reviews with the business units providing the
staffing needed. Detailed review schedules will be provided to the AIGAs
for the upcoming 3-year period. The review schedule will minimize the
burden on both the business unit conducting the review and the business
unit being reviewed. Due to anticipated workload in the last few months
of each fiscal year, no reviews will be scheduled or conducted during
the fourth quarter of a fiscal year.

Generally, the time allotted to conduct a review from start to finish is
12 weeks. These\
12 weeks include:

-   2 week planning for the review.

-   5 weeks executing the review on-site.

-   2 weeks preparing and issuing a draft report.

-   2 weeks for the respective AIGA to prepare and submit written
    comments on the draft report.

-   1 week finalizing the report upon receipt of comments from the AIGA.

***[Staffing Qualifications]{.underline}***: The DIGA will determine the
composition of the internal quality assurance review team. The team will
generally consist of three to five members who collectively possess the
skills/professional proficiency to perform the review. Generally, each
team will be led by a GS-14 with a team of GS-13 auditors who have at
least\
5 years auditing experience within the most recent 10 years. The GS-14
team leader will work under the direction of the Director, OMP. The
assigned team leader and the team will be assigned to the review full
time. Additionally, the direction provided by the Director, OMP will
assist the review teams to ensure consistency among the various peer
reviews. The Director will provide guidance related to the review
process, as well as provide perspective on how certain
situations/findings were addressed on prior reviews. The Director, OMP
will participate in the opening and closing conferences. OMP staff
members will provide requested reports, documents, and shared network
access for use by the review team.

The review team should be independent with respect to the office
reviewed. Former staff (within the previous 3 years) of the Directors'
offices being reviewed should not be selected for the review team.

The team leader is responsible for organizing and conducting the review,
communicating findings, and preparing the reports. Specifically the team
leader will:

-   Identify the scope and objectives of the review and communicate this
    to the AIGA and Directors being reviewed. No advance notice will be
    given regarding the audits selected for review to ensure the
    integrity of the data. In addition to an opening conference with the
    DIGA, an opening conference will be scheduled with the AIGA of the
    business unit under review.

-   Keep the AIGA and Directors current on the progress of the review.

-   Review all peer review working papers before the draft report is
    issued.

-   Hold an exit conference with the AIGA to discuss the issues and
    recommendations. Local results will be provided to the Directors and
    Audit Managers at the completion of the workpaper reviews.

-   Prepare draft and final reports for issuance to the AIGA by the
    DIGA.

######### 100.3.2 [Planning the Scope of an Internal Quality Assurance Review]{.underline}. The internal quality assurance review should assess the quality controls that the Directors in the business unit had in effect during the 12 months preceding the review. The review team leader is responsible for developing specific review steps that, at a minimum, include evaluating the following aspects of the audit program: 

-   Audit planning.

-   Audit execution/documentation of evidence in the workpapers.

-   Supervisory review of audit work.

-   Preparation of audit reports.

-   Audit and personnel management (including staff qualifications,
    independence, meeting Continuing Professional Education
    requirements, and use of the auditor competency matrix in employee
    performance measurement/development).

Items to be considered when planning the internal quality assurance
review include:

-   Evaluating the Directors' responses to the "Questionnaire for
    Directors -Adherence to Quality Control Policies and Procedures"\
    ([**Exhibit
    (300)-100.1**](../chapter300-100.doc#ExhibitQuestionnaireDirectors))
    and reviewing any written documentation provided by the Directors in
    the business unit being reviewed. The purpose of this review is to
    gain an understanding of how the business unit operates and how it
    ensures compliance with the *GAGAS*. The responses to these
    questionnaires should help the review team in developing specific
    review steps and determining the extent of the testing needed
    on-site.

-   Review of prior internal quality assurance review reports and
    workpapers. The purpose of this review is to identify areas
    requiring follow-up. Prior workpapers may be helpful in developing
    some of the review objectives as well as providing information on
    particular areas of concentration for the current review effort.

Other documentation or information should be considered. The review team
should consider reviewing records for the Directors in the business unit
being reviewed. This should include TCMIS information on the status of
the audits under the Directors' control (this information may be helpful
in selecting the individual audits to be reviewed on-site) and the
results of issues or trends identified based on the pre-issuance report
review process (performed by the OMP). In addition, the review team
should request information regarding the business unit's staff including
the grades, professional designations/certifications, a continuing
education summary for the 2 most recent years, and copies of the auditor
competency assessment forms used in determining employee development.

***[Selecting Individual Audits]{.underline}***: At least two audits per
Director in the business unit under review will be subject to review.
The selection of individual audits for review is based on several
factors, including the number, type, and significance of reports issued
by the audit office; prior internal quality assurance review results;
and concerns of the TIGTA or DIGA. Because of all the factors involved
in choosing the numbers and types of audits to review, these procedures
do not mandate any minimums. The audits selected should be sufficient to
provide the review team with a reasonable basis for its opinions
regarding whether the Directors in the business unit under review have
established adequate management controls and have followed applicable
auditing standards.

The audits selected should be representative of the major types of work
performed. Audit reports issued within 12 months of the review that are
considered significant should be selected over more routine audits.
Major emphasis should be given to reports highlighted in the two most
recent Semiannual Reports to the Congress, reports having large dollar
savings or efficiencies, reports having a material impact on operations,
and other reports the TIGTA or DIGA considers significant.

The quality assurance review team leader will inform the AIGA and
Directors in advance of the planned level of coverage and the time
required for the review. No advance notice will be given regarding the
audits selected for review to ensure the integrity of the data. The
Directors should ensure that key office staff is available during the
review.

######### 100.3.3 [Internal Quality Assurance Review Fieldwork]{.underline}. The review team leader is responsible for managing the efforts of the review team to collect and analyze data, briefing appropriate managers, and preparing written reports. The results and conclusions of the internal quality assurance review will be documented in electronic workpapers that specifically identify the source and extent of positive and negative conditions reported. 

[The team leader of the review team is responsible for all workpaper
reviews.]{.underline}

In assessing the controls applied to sampled audits, the review team
will complete the quality control checklist shown in [**Exhibit
(300)-100.2**](../chapter300-100.doc#ExhibitQAChecklistIndividualAudits),
Checklist for Review of Individual Performance Audits. This checklist
provides a guide to items that should be tested to determine whether the
business unit's staff is performing audits in accordance with the
*GAGAS*. The results of this checklist, the Directors' responses to the
checklist identified in [**Exhibit
(300)-100.1**](../chapter300-100.doc#ExhibitQuestionnaireDirectors), and
the additional steps developed by the review team leader should provide
the team with sufficient information to conclude whether the business
unit has adopted and is following appropriate quality control
procedures.

If the review team assesses an element of quality control as
satisfactory or not applicable, the basis for such an assessment should
be fully explained. Such an assessment would result in planning minimal
audit work to test the application of the controls for that element. If
the team assesses a quality control element as unsatisfactory, efforts
should be made to overcome time, staff, and funding constraints to
include more substantive testing in order to fully develop the finding
to be included in the report (specifically the underlying cause of the
issue).

If an impairment is encountered (e.g. key staff members are not
available during the\
on-site visitation) during the review, the team should make every effort
to remove the impairment. However, if the problem cannot be resolved and
the review objectives satisfied through other procedures, the impairment
should be included in the report.

***[Audit Documentation:]{.underline}*** Electronic workpapers (e.g.,
TeamMate) shall be prepared to document the work performed and
conclusions reached during the internal quality assurance review. The
workpapers and any other information concerning the business unit or its
staff obtained through the review are not for general distribution. Such
information should not be disclosed to anyone not administering the
internal review program or carrying out external reviews of the TIGTA.

The review team leader is responsible for supervisory reviews of the
peer review workpapers before the draft report is issued. The peer
review report will require referencing. The leader is also responsible
for ensuring that all workpapers and related documents are maintained in
a separate directory on the network with access limited to the team and
OMP staff. Once the peer review final report has been issued, the OMP
will remove the files in this directory and maintain them for potential
use by external peer review teams.

######### 100.3.4 [Reporting Internal Quality Assurance Results]{.underline}. The review team leader will conduct an exit conference with the AIGA to discuss the findings and results of the review. After this conference, the team leader, with the assistance of the other team members, will prepare a draft report on the overall results of the review. Local results will be provided to the Directors and Audit Managers at the completion of workpaper reviews. 

An internal quality assurance review report should contain:

-   Scope of the review, including any limitations thereon, and any
    expansion beyond the basic review.

-   A description of the objectives including a statement that the
    review was performed in accordance with the *GAGAS*.

-   Noteworthy accomplishments found during the review. Examples of such
    items would be particularly creative and effective audit approaches
    or procedures or particularly efficient and effective quality
    control procedures.

-   The review team's findings and recommendations.

-   AIGA's response (final reports).

The presentation of a finding should be both complete and fair.
Exaggeration of the significance or the extent of deficiencies should be
avoided. If deficiencies were found in only one of several audits
reviewed, the report should clearly indicate that the deficiencies were
not office-wide. The tone of the report should be positive and
constructive. The report should stress the opportunity for improvement
in the future rather than criticism of the past. Recommendations should
be made where specific improvements are needed.

***[Report Issuance]{.underline}***: The DIGA will issue the draft
report to the respective AIGA. The AIGA will have an opportunity to
comment on the findings and recommendations before the report is
finalized. Disagreements on issues and recommendations that cannot be
resolved between the review team and the AIGA will be elevated to the
DIGA for resolution.

The AIGA' is responsible for preparing a written response to the draft
report within 14 days. The response will include the actions planned for
any recommendations made in the report as well as a timeline for
corrective actions. This response shall be issued by the AIGA to the
DIGA. The DIGA will evaluate the AIGA's response to determine whether it
is comprehensive, feasible, and sufficient to correct the deficiencies
identified in the report.

The review team leader is responsible for incorporating the response
received from the AIGA into the final report.

***[Follow-up Responsibilities]{.underline}***: The Director, OMP, will
maintain a system to track implementation and the status of the
recommendations of the internal quality assurance review. The respective
AIGA is responsible for advising the DIGA and the Director, OMP, of the
status of the corrective actions.

100.4 [External Quality Control Reviews]{.underline}.

The objective of the PCIE external quality control review program is to
foster quality audits by Inspector General offices through an
independent assessment of the effectiveness of the internal quality
control system in providing reasonable assurance that applicable audit
standards and requirements are being followed.

The DIGA is responsible for arranging for an external quality control
review of TIGTA operations at least once every 3 years. The external
quality control reviews will enable an independent organization to
provide an opinion to the TIGTA about whether the: (1) quality control
system is in place and operating effectively and (2) policies and
applicable audit standards are being followed.

The DIGA must also provide an audit staff to perform quality control
reviews (peer reviews) of other audit organizations at least once every
3 years. The review team will be comprised of a GM-15 and 3 -- 5 GM-14s.

PCIE checklists serve as guides for conducting external reviews of audit
organizations. The checklists assist the external review team with
assessing the adequacy of the design of the quality assurance program
and provide information on overall compliance with policies, procedures,
and standards. The 2005 revision to the PCIE's *Guide for Conducting
External Quality Control Reviews of the Audit Operations of Offices of
Inspector General* and the checklists are available electronically on
the IGnet web site under PCIE-ECIE/Committees/Audit/Manuals & Guides (a
link to the www.ignet.gov website is available on the Audit intranet
webpage under Inspectors General Community Web Site or click here
[**http://www.ignet.gov/pande/audit1.html#guide**](http://www.ignet.gov/pande/audit1.html#guide).
The checklists include:

-   **Appendix A** - Office of Inspector General's (OIG) Audit Quality
    Control Policies and Procedures.

-   **Appendix B** -- Checklist for Review of Adherence to Selected
    General Standards.

-   **Appendix C** - Checklist for Assessment of the Internal Quality
    Assurance Program.

-   **Appendix D** -- Checklist for Review of Individual Financial
    Statement Audits Performed by Inspectors General.

-   **Appendix E** - Checklist for Review of Individual Performance
    Audits.

-   **Appendix F** - Checklist for Review of OIG Monitoring of Audits
    Performed by Independent Public Accountants.

-   **Appendix G** -- Checklist for Review of Attestation Engagements.

100.5 [Quality Assurance Pre-Issuance Reviews of TIGTA Audit
Reports]{.underline}.

The DIGA will review all draft and final audit reports prior to signing
and issuing them to the IRS Commissioner. In general, all audit reports
will be issued in draft version to enable the TIGTA's OA to receive
written feedback on the factual representation of information presented
in the audit document.

Each AIGA is responsible for reviewing and approving draft and final
audit reports and the respective Outcome Measure Summary (OMS) documents
for his or her respective business unit. Once the AIGA determines that a
draft report is ready for the DIGA's review, the report, along with the
OMS document will be forwarded to the OMP e-mail address (i.e.,
**\*TIGTA Audit Reports**). The OMS document is needed to facilitate the
quality assurance review process and the process used for developing the
Semiannual Report to the Congress.

The OMP will serve as the DIGA's quality assurance point by reviewing
draft reports for quality assurance issues.

Quality Assurance reviews of reports are intended to ensure:

-   General compliance with the *GAGAS* for reporting requirements.

-   Conformance with the TIGTA report format.

-   Clarity of the information to an outside reader.

-   Conformance with rules for grammar, punctuation, and style as
    outlined in the Shipley Associates *Style Guide*.

The results of these pre-issuance reviews will be used to revise and
refine the TIGTA reporting process on an ongoing basis. These reviews
are not intended to circumvent line-management controls or validate the
accuracy of reported issues. Auditors, team leaders, Audit Managers,
Directors, and AIGAs are responsible for providing quality products
timely.

It is anticipated that the pre-issuance process will take 7-10 workdays.
While this time frame should be considered when establishing target
dates for completion of audit fieldwork and issuance of the draft
report, this process is not intended to delay efforts to discuss audit
issues with IRS management. If initial feedback is not provided within
the 7-10 workday time frame, the respective AIGA should contact the
Director, OMP.

To ensure consistency in the review process, the OMP's quality assurance
staff will use a standardized checklist for their pre-issuance reviews.
This checklist was derived from the PCIE quality assurance process and
the *GAGAS*. The Quality review checklist for the draft report is
located on the network under **File/New/Audit Forms/Draft Report
Checklist.dot.**

Once the pre-issuance review has been completed, the Director, OMP, will
forward the report, and any substantive comments/requested changes, to
the appropriate AIGA. (If the report requires editorial changes only,
these changes will be made by OMP personnel and a copy provided to the
DIGA for review.) The AIGA should review the comments and ensure the
appropriate revisions are made. After all comments by the OMP have been
addressed, the AIGA should submit the report to the DIGA for signature.
However, if the OMP previously commented on outcome measures/potential
outcome measures the draft report and OMS will be resubmitted to the
**\*TIGTA Audit Reports email address**. The OMP will conduct a second
review of the draft report that is limited to outcome measures and
return the "report package" to the AIGA for reconsideration, if
necessary, and submission to the DIGA. The reports should be named
following the standard TIGTA filename conventions and include the date
submitted (see **[Exhibit
(300)-130.](../../300-130/chapter300-130.doc#ExhibitNamingConventions)2**).

Reports requiring any substantive/additional changes as a result of the
DIGA's review will be returned to the respective AIGA for revision and
resubmission to the DIGA. When substantive changes are made, the
respective AIGA is responsible for ensuring that the audit report is
re-referenced.

All final reports will be subject to pre-issuance review by the
respective AIGA's designated reviewer prior to be being provided to the
Quality Assurance section of OMP for review. Final reports reviewed and
cleared by the OMP will be forwarded to the DIGA for signature. The
scope of these reviews will also be guided by a standardized checklist.
The Quality review checklist for the final report is located on the
network under **File/New/Audit Forms/Final Report Checklist.dot**. In
addition, the reviewers will ensure the OMS document is updated to
reflect IRS management's response/position on the outcomes.

**[Exhibit (300)-100.1]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

[PURPOSE AND INSTRUCTIONS]{.underline}

This questionnaire is designed to obtain general information about
internal quality control systems in a Director's office during a peer
review of a business unit. This questionnaire is based on the one used
for the President's Council on Integrity and Efficiency external quality
assurance review and tailored to fit the Treasury Inspector General for
Tax Administration (TIGTA) organization. It contains separate sections
with specific questions concerning policies and procedures designed to
assure compliance with the ***generally accepted government auditing
standards** (GAGAS)*.

In responding to these questions, each Director in the business unit
being reviewed should briefly describe the procedures or processes
relevant to the area and also provide a reference to written
documentation, including any relevant checklists or forms that are used.
If there are procedures or similar documents, copies of this information
should be provided to the review team, if possible.

The responses to this checklist will assist the review team in
identifying the business unit's quality control procedures and will
assist the review team in developing review steps to be completed during
the on-site visitation.

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

  ---------------------------------- ------------------------------------
  Business Unit:                     

  ---------------------------------- ------------------------------------

  ---------------------------------- ------------------------------------
  Assistant Inspector General for    
  Audit:                             

  ---------------------------------- ------------------------------------

+--------------------+-------------------------------------------------+
| # Director:        | #                                               |
+--------------------+-------------------------------------------------+

  -------------- --------------------------------------------------------
  Date Prepared: 

  -------------- --------------------------------------------------------

**Overall:**

1.  Have you developed any local policies and procedures to supplement
    TIGTA policies and procedures? If so, please list them and provide
    copies.

Response and references:

**Independence**

1.  How do you or your managers identify any personal and/or external
    impairment?

2.  If impairments were identified, how did you handle these situations?
    (GAGAS 3.07 through 3.11)

3.  If you used outside specialists on an audit, how did you ensure
    their independence and that they had no personal and/or external
    impairment? (GAGAS 3.16)

4.  If you conducted nonaudit services, what did you do to ensure that
    these nonaudit services did not impair independence? (GAGAS 3.20)

Response and references:

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

**Competence**

1.  How do you ensure audit teams collectively possess the skills needed
    for individual audit assignments? (GAGAS 3.40 through 3.43)

2.  Do you have a process for determining when consultants are
    required?\
    (GAGAS 3.41, 3.48)

-   Has your office used consultants to assist an audit team in
    performing specific tasks?

-   If so, how did your staff evaluate the consultant's qualifications?\
    (GAGAS 3.41, 3.49)

3.  How do you ensure that auditors meet the continuing education and
    training requirements in accordance with the *GAGAS* and obtain
    specialized training and/or developmental assignments? (GAGAS
    3.46-3.48)

Response and References:

**Professional Judgment**

1.  What are your procedures for determining that one or more standards
    are not applicable to an audit? (GAGAS 3.31 through 3.39, 8.30-8.31)

2.  Who makes this decision, is the decision reviewed, and is there any
    guidance provided to the staff to assist them in making the
    appropriate decision?\
    (GAGAS 3.31 through 3.39)

Response and references:

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

**Quality Control and Assurance**

1.  Do you perform reviews of your office and, if so, how are these
    reviews performed (who performs the review, scope, frequency, etc.)?

2.  Are the results of these reviews documented and shared with the
    audit staff? If so, please provide copies of these documents. (GAGAS
    3.51-3.52)

Response and references:

**Audit Planning**

1.  How do you identify and select audits for review?

2.  Who is required to review and approve the audit plan, and how is
    this approval documented? (GAGAS 7.50 -- 7.51)

3.  How do you ensure that reviews are properly planned and all
    appropriate information is considered during the planning process?
    Who is involved in the planning process? (GAGAS 7.06-7.43)

4.  How do you ensure that the auditors properly coordinate with
    external sources (other Assistant Inspectors General for Audit or
    audit organizations) to determine whether similar audits are being
    conducted or planned in other areas? (GAGAS 7.41-7.43)

5.  What is your office's policy for revising the original scope and/or
    objective of a review (e.g. what considerations are made, who is
    involved in the decision, and how is it documented)?

6.  How do you assess potential sources of data and the validity and
    reliability of such data? (GAGAS 7.23-7.27, 7.65)

7.  How do you ensure the audit is planned effectively to culminate in
    the timely issuance of the report? (GAGAS 7.51)

Response and references:

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

**Supervision**

1.  How do you ensure that auditors and others (e.g. consultants,
    computer specialists) receive appropriate guidance and effective
    supervision during the audit? (GAGAS 7.52-7.54)

2.  How do you ensure that the staff is properly informed of their
    responsibilities and the objectives of the assigned work? (GAGAS
    7.52-7.54)

3.  Who is responsible for reviewing the work performed by the audit
    team? What is the purpose/scope of the review? (GAGAS 7.52-7.54)

4.  How do you ensure the documentation of supervisory reviews of audit
    work? (GAGAS 7.52, 7.79)

Response and references:

**Evidence and Documentation**

1.  How do you ensure that audit findings and conclusions are supported
    by sufficient, competent, and relevant evidence? (GAGAS 7.55, 7.71)

2.  How does your office ensure the validity of computer-processed
    data?\
    (GAGAS 7.23-7.27, 7.65)

3.  How does your office ensure that the assessment of the reliability
    and validity of computer-processed data and the source of the data
    are documented in the workpapers and the report? (GAGAS 8.15)

4.  What is your office's policy on the use of sampling? How do you and
    your managers ensure that proper sampling techniques are used during
    an audit?

5.  How do you ensure workpapers are prepared in accordance with
    established standards and procedures and ensure the safety, custody,
    and retention of the documentation? (GAGAS 7.77-7.84)

Response and references:

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

**Internal Controls**

1.  Do you require audit staffs to identify internal controls during the
    planning phase of a review (e.g. micro risk assessments)? If so, are
    the results of this analysis documented in the workpapers?

2.  How do you determine the need to assess the Internal Revenue
    Service's applicable management controls to satisfy audit
    objectives? (GAGAS 7.16)

Response and references:

**Legal and Regulatory Requirements**

1.  How do you assure that the audit staff is alert to situations or
    transactions that are indicative of illegal acts or abuse? How do
    you ensure that audit steps are properly designed to test for these
    types of situations? (GAGAS 7.19, 7.27-7.28)

2.  How do you ensure your staff consults with legal counsel when
    questions arise about the application or interpretation of laws and
    regulations? (GAGAS 7.21, 8.23)

Response and references:

**Reporting Standards**

1.  How do you ensure that all applicable reporting standards are
    followed?\
    (GAGAS 8.01-8.42)

2.  If issues are identified during a review, but are not significant
    enough to warrant reporting, are these issues communicated to
    management and, if so, how (e.g. memoranda, discussions, etc.)?
    (GAGAS 8.19-8.22)

Response and references:

**[Exhibit (300)-100.1 (cont'd)]{.underline}**

[Questionnaire for Directors -]{.underline}

[Adherence to Quality Control Policies and Procedures]{.underline}

**Administrative Issues**

1.  How do you effectively and timely communicate with your staff?

2.  How do you ensure effective communication with audit liaisons?

3.  How do you ensure your employees are properly and timely evaluated?

4.  Do you require the audit managers to use the auditor competency
    matrix to assess employee development? How is the assessment form
    used in the performance measurement/employee development process?

5.  Have you developed any new initiatives to improve/ensure quality?

Response and references:

**[Exhibit (300)-100.2]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

### [PURPOSE AND INSTRUCTIONS]{.underline}

This checklist is to be used to review the implementation of the quality
control elements of individual audit performance. This questionnaire is
based on the Checklist for Review of Individual Performance Audits used
for President's Council on Integrity and Efficiency external peer
reviews and is tailored to fit the Treasury Inspector General for Tax
Administration (TIGTA) organization's procedures. While this checklist
provides valuable information, it should *not* be the only step
performed to evaluate the office's adherence to quality control
procedures. Additional tests may be needed, including discussions with
the appropriate audit personnel to obtain clarification and/or
additional information.

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

  ----------------------------- -----------------------------------------
  Business Unit:                

  ----------------------------- -----------------------------------------

  ----------------------------- -----------------------------------------
  Assistant Inspector General   
  for Audit/Director:           

  ----------------------------- -----------------------------------------

  ----------------------------- -----------------------------------------
  Director:                     

  ----------------------------- -----------------------------------------

  ----------------------------- -----------------------------------------
  Audit Manager:                

  ----------------------------- -----------------------------------------

+------------+---------------------------------------------------------+
| # Title    | #                                                       |
|  of Audit: |                                                         |
+------------+---------------------------------------------------------+

  ------------- ---------------------------------------------------------
  Audit Number: 

  ------------- ---------------------------------------------------------

  ------------- ------------- ------------- -----------------------------
  Reviewed By:                Date          
                              Reviewed:     

  ------------- ------------- ------------- -----------------------------

**[Exhibit (300)-100.2]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------+-----------------------------------------+----+---+----+
| ***1.        |                                         | ## | # | ## |
| Independence |                                         |  Y | # |  N |
| (Generally   |                                         | ES |   | /A |
| Accepted     |                                         |    | N |    |
| Government   |                                         |    | O |    |
| Auditing     |                                         |    |   |    |
| Standards    |                                         |    |   |    |
| \[GAGAS\]    |                                         |    |   |    |
| 3            |                                         |    |   |    |
| .02-3.30)*** |                                         |    |   |    |
+==============+=========================================+====+===+====+
| Did each     |                                         |    |   |    |
| auditor      |                                         |    |   |    |
| assigned to  |                                         |    |   |    |
| the review   |                                         |    |   |    |
| complete the |                                         |    |   |    |
| (annual)     |                                         |    |   |    |
| Auditor      |                                         |    |   |    |
| Personal     |                                         |    |   |    |
| Impairment   |                                         |    |   |    |
| C            |                                         |    |   |    |
| ertification |                                         |    |   |    |
| form? (See   |                                         |    |   |    |
| [**Section   |                                         |    |   |    |
| (300)-30.    |                                         |    |   |    |
| 2.1.1**](../ |                                         |    |   |    |
| ../300-30/ch |                                         |    |   |    |
| apter300-30. |                                         |    |   |    |
| doc#personal |                                         |    |   |    |
| impairment)) |                                         |    |   |    |
| Are there    |                                         |    |   |    |
| any          |                                         |    |   |    |
| indications  |                                         |    |   |    |
| in the       |                                         |    |   |    |
| workpapers   |                                         |    |   |    |
| that the     |                                         |    |   |    |
| auditors had |                                         |    |   |    |
| any external |                                         |    |   |    |
| or personal  |                                         |    |   |    |
| impairments  |                                         |    |   |    |
| to           |                                         |    |   |    |
| i            |                                         |    |   |    |
| ndependence? |                                         |    |   |    |
| (*Government |                                         |    |   |    |
| Auditing     |                                         |    |   |    |
| Standards*   |                                         |    |   |    |
| \[GAGAS\]    |                                         |    |   |    |
| 3.02-3.30)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If           |                                         |    |   |    |
| impairments  |                                         |    |   |    |
| were noted,  |                                         |    |   |    |
| was the      |                                         |    |   |    |
| individual   |                                         |    |   |    |
| with the     |                                         |    |   |    |
| impairment   |                                         |    |   |    |
| reassigned   |                                         |    |   |    |
| and/or the   |                                         |    |   |    |
| impairment   |                                         |    |   |    |
| disclosed in |                                         |    |   |    |
| the report?  |                                         |    |   |    |
| (GAGAS 3.09, |                                         |    |   |    |
| 8.11)        |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+--------------+-----------------------------------------+----+---+----+
| ***2.        |                                         | ## | # | ## |
| Professional |                                         |  Y | # |  N |
| Judgment     |                                         | ES |   | /A |
| (GAGAS       |                                         |    | N |    |
| 3            |                                         |    | O |    |
| .31-3.39)*** |                                         |    |   |    |
+==============+=========================================+====+===+====+
| Was the      |                                         |    |   |    |
| audit        |                                         |    |   |    |
| conducted in |                                         |    |   |    |
| accordance   |                                         |    |   |    |
| with all     |                                         |    |   |    |
| applicable   |                                         |    |   |    |
| audit        |                                         |    |   |    |
| standards?   |                                         |    |   |    |
| (GAGAS 3.31, |                                         |    |   |    |
| A1.02.a.)    |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If an        |                                         |    |   |    |
| applicable   |                                         |    |   |    |
| standard was |                                         |    |   |    |
| not met, was |                                         |    |   |    |
| the issue    |                                         |    |   |    |
| properly     |                                         |    |   |    |
| addressed in |                                         |    |   |    |
| the report   |                                         |    |   |    |
| (e.g. was    |                                         |    |   |    |
| the standard |                                         |    |   |    |
| (not         |                                         |    |   |    |
| followed)    |                                         |    |   |    |
| identified   |                                         |    |   |    |
| along with   |                                         |    |   |    |
| the reasons  |                                         |    |   |    |
| why the      |                                         |    |   |    |
| standard was |                                         |    |   |    |
| not followed |                                         |    |   |    |
| and the      |                                         |    |   |    |
| effect that  |                                         |    |   |    |
| not          |                                         |    |   |    |
| following    |                                         |    |   |    |
| the standard |                                         |    |   |    |
| had on the   |                                         |    |   |    |
| audit        |                                         |    |   |    |
| results)?    |                                         |    |   |    |
| Also, was    |                                         |    |   |    |
| the          |                                         |    |   |    |
| d            |                                         |    |   |    |
| etermination |                                         |    |   |    |
| documented   |                                         |    |   |    |
| in the       |                                         |    |   |    |
| workpapers   |                                         |    |   |    |
| and          |                                         |    |   |    |
| revie        |                                         |    |   |    |
| wed/approved |                                         |    |   |    |
| by the       |                                         |    |   |    |
| Director and |                                         |    |   |    |
| Assistant    |                                         |    |   |    |
| Inspector    |                                         |    |   |    |
| General for  |                                         |    |   |    |
| Audit        |                                         |    |   |    |
| (AIGA)?      |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 3.31-3.39,   |                                         |    |   |    |
| 8.30-8.31)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+--------------+-----------------------------------------+----+---+----+
| ***3.        |                                         | ## | # | ## |
| Competence   |                                         |  Y | # |  N |
| (GAGAS       |                                         | ES |   | /A |
| 3            |                                         |    | N |    |
| .40-3.49)*** |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Did the      |                                         |    |   |    |
| auditors     |                                         |    |   |    |
| assigned to  |                                         |    |   |    |
| the audit    |                                         |    |   |    |
| collectively |                                         |    |   |    |
| possess      |                                         |    |   |    |
| adequate     |                                         |    |   |    |
| professional |                                         |    |   |    |
| proficiency  |                                         |    |   |    |
| for the      |                                         |    |   |    |
| tasks        |                                         |    |   |    |
| required?    |                                         |    |   |    |
| (*GAGAS*     |                                         |    |   |    |
| 3.40, 3.42)  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| auditors     |                                         |    |   |    |
| have         |                                         |    |   |    |
| appropriate  |                                         |    |   |    |
| knowledg     |                                         |    |   |    |
| e/experience |                                         |    |   |    |
| in the area  |                                         |    |   |    |
| under        |                                         |    |   |    |
| review? Did  |                                         |    |   |    |
| they possess |                                         |    |   |    |
| computer     |                                         |    |   |    |
| /specialized |                                         |    |   |    |
| skills       |                                         |    |   |    |
| required to  |                                         |    |   |    |
| complete     |                                         |    |   |    |
| testing?     |                                         |    |   |    |
| (GAGAS 3.43, |                                         |    |   |    |
| 7.23-7.27)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| auditors     |                                         |    |   |    |
| meet the     |                                         |    |   |    |
| auditing     |                                         |    |   |    |
| standards    |                                         |    |   |    |
| for          |                                         |    |   |    |
| Continuing   |                                         |    |   |    |
| Professional |                                         |    |   |    |
| Education    |                                         |    |   |    |
| (CPE)        |                                         |    |   |    |
| r            |                                         |    |   |    |
| equirements? |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 3.46-3.49)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| auditors     |                                         |    |   |    |
| have         |                                         |    |   |    |
| d            |                                         |    |   |    |
| ocumentation |                                         |    |   |    |
| described in |                                         |    |   |    |
| [**Section   |                                         |    |   |    |
| (3           |                                         |    |   |    |
| 00)-140.5**] |                                         |    |   |    |
| (../../300-1 |                                         |    |   |    |
| 40/chapter30 |                                         |    |   |    |
| 0-140.doc#do |                                         |    |   |    |
| cumentation) |                                         |    |   |    |
| to support   |                                         |    |   |    |
| CPE hours    |                                         |    |   |    |
| recorded on  |                                         |    |   |    |
| the          |                                         |    |   |    |
| TeamCentral  |                                         |    |   |    |
| Management   |                                         |    |   |    |
| Information  |                                         |    |   |    |
| System       |                                         |    |   |    |
| (TCMIS)? Did |                                         |    |   |    |
| the          |                                         |    |   |    |
| d            |                                         |    |   |    |
| ocumentation |                                         |    |   |    |
| support the  |                                         |    |   |    |
| CPE hours    |                                         |    |   |    |
| and type     |                                         |    |   |    |
| recorded in  |                                         |    |   |    |
| the TCMIS?   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------+-----------------------------------------+----+---+----+
| ***4. Audit  |                                         | ## | # | ## |
| Planning     |                                         |  Y | # |  N |
| (GAGAS       |                                         | ES |   | /A |
| 7            |                                         |    | N |    |
| .06-7.51)*** |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Were the     |                                         |    |   |    |
| objective,   |                                         |    |   |    |
| methodology, |                                         |    |   |    |
| and scope    |                                         |    |   |    |
| for the      |                                         |    |   |    |
| review       |                                         |    |   |    |
| adequately   |                                         |    |   |    |
| define       |                                         |    |   |    |
| d/developed? |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.06-7.12)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were the     |                                         |    |   |    |
| significance |                                         |    |   |    |
| of the       |                                         |    |   |    |
| review and   |                                         |    |   |    |
| the needs of |                                         |    |   |    |
| potential    |                                         |    |   |    |
| users of the |                                         |    |   |    |
| report       |                                         |    |   |    |
| considered?  |                                         |    |   |    |
| (GAGAS 7.13) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was          |                                         |    |   |    |
| sufficient   |                                         |    |   |    |
| background   |                                         |    |   |    |
| information  |                                         |    |   |    |
| obtained and |                                         |    |   |    |
| analyzed on  |                                         |    |   |    |
| the          |                                         |    |   |    |
| o            |                                         |    |   |    |
| rganization, |                                         |    |   |    |
| program,     |                                         |    |   |    |
| activity, or |                                         |    |   |    |
| function     |                                         |    |   |    |
| being        |                                         |    |   |    |
| reviewed?    |                                         |    |   |    |
| (GAGAS 7.10) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were the key |                                         |    |   |    |
| internal     |                                         |    |   |    |
| controls     |                                         |    |   |    |
| identified   |                                         |    |   |    |
| (e.g., micro |                                         |    |   |    |
| risk         |                                         |    |   |    |
| assessment   |                                         |    |   |    |
| performed)   |                                         |    |   |    |
| to assess    |                                         |    |   |    |
| the          |                                         |    |   |    |
| o            |                                         |    |   |    |
| rganization, |                                         |    |   |    |
| program,     |                                         |    |   |    |
| activity, or |                                         |    |   |    |
| function     |                                         |    |   |    |
| being        |                                         |    |   |    |
| reviewed?    |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.11-7.16)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were the key |                                         |    |   |    |
| internal     |                                         |    |   |    |
| controls     |                                         |    |   |    |
| documented   |                                         |    |   |    |
| in the       |                                         |    |   |    |
| workpapers?  |                                         |    |   |    |
| (GAGAS 8.19) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was the      |                                         |    |   |    |
| applicable   |                                         |    |   |    |
| legal and    |                                         |    |   |    |
| regulatory   |                                         |    |   |    |
| environment  |                                         |    |   |    |
| related to   |                                         |    |   |    |
| the          |                                         |    |   |    |
| o            |                                         |    |   |    |
| rganization, |                                         |    |   |    |
| program,     |                                         |    |   |    |
| activity, or |                                         |    |   |    |
| function     |                                         |    |   |    |
| being        |                                         |    |   |    |
| reviewed     |                                         |    |   |    |
| properly     |                                         |    |   |    |
| identified   |                                         |    |   |    |
| and tested   |                                         |    |   |    |
| for          |                                         |    |   |    |
| compliance?  |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.28-7.35)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were         |                                         |    |   |    |
| significant  |                                         |    |   |    |
| findings,    |                                         |    |   |    |
| reco         |                                         |    |   |    |
| mmendations, |                                         |    |   |    |
| and          |                                         |    |   |    |
| questioned   |                                         |    |   |    |
| costs from   |                                         |    |   |    |
| previous     |                                         |    |   |    |
| audits       |                                         |    |   |    |
| identified   |                                         |    |   |    |
| and          |                                         |    |   |    |
| considered   |                                         |    |   |    |
| for          |                                         |    |   |    |
| follow-up?   |                                         |    |   |    |
| (GAGAS 7.36) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were the     |                                         |    |   |    |
| potential    |                                         |    |   |    |
| sources of   |                                         |    |   |    |
| data that    |                                         |    |   |    |
| would be     |                                         |    |   |    |
| needed for   |                                         |    |   |    |
| specific     |                                         |    |   |    |
| tests        |                                         |    |   |    |
| considered   |                                         |    |   |    |
| as well as   |                                         |    |   |    |
| how the data |                                         |    |   |    |
| would be     |                                         |    |   |    |
| validated?   |                                         |    |   |    |
|              |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.39-7.40)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was there    |                                         |    |   |    |
| evidence     |                                         |    |   |    |
| that the     |                                         |    |   |    |
| auditors     |                                         |    |   |    |
| tried to     |                                         |    |   |    |
| determine    |                                         |    |   |    |
| whether a    |                                         |    |   |    |
| similar      |                                         |    |   |    |
| review had   |                                         |    |   |    |
| recently     |                                         |    |   |    |
| been         |                                         |    |   |    |
| conducted or |                                         |    |   |    |
| was          |                                         |    |   |    |
| currently in |                                         |    |   |    |
| the planning |                                         |    |   |    |
| phase?       |                                         |    |   |    |
| (GAGAS 7.36) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------+-----------------------------------------+----+---+----+
| ***4a. Audit |                                         | ## | # | ## |
| Plan***      |                                         |  Y | # |  N |
|              |                                         | ES |   | /A |
|              |                                         |    | N |    |
|              |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Was an       |                                         |    |   |    |
| adequate     |                                         |    |   |    |
| audit plan   |                                         |    |   |    |
| prepared and |                                         |    |   |    |
| approved by  |                                         |    |   |    |
| the Director |                                         |    |   |    |
| and AIGA?    |                                         |    |   |    |
| Were the     |                                         |    |   |    |
| nature and   |                                         |    |   |    |
| scope of the |                                         |    |   |    |
| work to be   |                                         |    |   |    |
| performed    |                                         |    |   |    |
| sufficient   |                                         |    |   |    |
| to attain    |                                         |    |   |    |
| the stated   |                                         |    |   |    |
| objective?   |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.50-7.51)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was the      |                                         |    |   |    |
| audit plan   |                                         |    |   |    |
| approved and |                                         |    |   |    |
| signed       |                                         |    |   |    |
| within 7     |                                         |    |   |    |
| calendar     |                                         |    |   |    |
| days of the  |                                         |    |   |    |
| issuance of  |                                         |    |   |    |
| the          |                                         |    |   |    |
| engagement   |                                         |    |   |    |
| letter?      |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was          |                                         |    |   |    |
| j            |                                         |    |   |    |
| ustification |                                         |    |   |    |
| adequately   |                                         |    |   |    |
| documented,  |                                         |    |   |    |
| explained    |                                         |    |   |    |
| and approved |                                         |    |   |    |
| for audit    |                                         |    |   |    |
| steps not    |                                         |    |   |    |
| performed    |                                         |    |   |    |
| fully and/or |                                         |    |   |    |
| dropped?     |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was the      |                                         |    |   |    |
| audit plan   |                                         |    |   |    |
| timely       |                                         |    |   |    |
| updated when |                                         |    |   |    |
| changes to   |                                         |    |   |    |
| the work     |                                         |    |   |    |
| were made    |                                         |    |   |    |
| during the   |                                         |    |   |    |
| audit? If    |                                         |    |   |    |
| so, did      |                                         |    |   |    |
| revisions to |                                         |    |   |    |
| the plan     |                                         |    |   |    |
| s            |                                         |    |   |    |
| ubstantially |                                         |    |   |    |
| alter the    |                                         |    |   |    |
| objective    |                                         |    |   |    |
| and scope of |                                         |    |   |    |
| the review?  |                                         |    |   |    |
| Was the      |                                         |    |   |    |
| revised plan |                                         |    |   |    |
| approved by  |                                         |    |   |    |
| the Director |                                         |    |   |    |
| and AIGA?    |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.50-7.51)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| audit plan   |                                         |    |   |    |
| include      |                                         |    |   |    |
| steps for    |                                         |    |   |    |
| identifying  |                                         |    |   |    |
| the outcomes |                                         |    |   |    |
| planned for  |                                         |    |   |    |
| the review?  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| audit plan   |                                         |    |   |    |
| contain      |                                         |    |   |    |
| realistic    |                                         |    |   |    |
| estimates    |                                         |    |   |    |
| for          |                                         |    |   |    |
| performing   |                                         |    |   |    |
| the review   |                                         |    |   |    |
| (e.g. staff  |                                         |    |   |    |
| days,        |                                         |    |   |    |
| calendar     |                                         |    |   |    |
| days and     |                                         |    |   |    |
| travel       |                                         |    |   |    |
| costs)?      |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If auditors  |                                         |    |   |    |
| relied on    |                                         |    |   |    |
| the work of  |                                         |    |   |    |
| another      |                                         |    |   |    |
| independent  |                                         |    |   |    |
| auditor or   |                                         |    |   |    |
| experts, did |                                         |    |   |    |
| the audit    |                                         |    |   |    |
| plan include |                                         |    |   |    |
| procedures   |                                         |    |   |    |
| to provide a |                                         |    |   |    |
| sufficient   |                                         |    |   |    |
| basis for    |                                         |    |   |    |
| that         |                                         |    |   |    |
| reliance?    |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+---------------------------------------------------------+----+---+----+
| ***5. Supervision (GAGAS 7.52-7.54)***                  | ## | # | ## |
|                                                         |  Y | # |  N |
|                                                         | ES |   | /A |
|                                                         |    | N |    |
|                                                         |    | O |    |
+=========================================================+====+===+====+
| Does the level of instruction provided to the audit     |    |   |    |
| staff appear appropriate and timely considering the     |    |   |    |
| knowledge and experience of the staff and the           |    |   |    |
| complexity of the audit? (GAGAS 7.52-7.54)              |    |   |    |
+---------------------------------------------------------+----+---+----+
| Was supervisory involvement (including the Team Leader, |    |   |    |
| Audit Manager, and Director) adequate to ensure the     |    |   |    |
| review was properly planned, executed, and reported?    |    |   |    |
| (GAGAS 7.52-7.54)                                       |    |   |    |
+---------------------------------------------------------+----+---+----+
| Was the auditor's work timely reviewed to ensure        |    |   |    |
| adherence to the audit plan, that audit objectives were |    |   |    |
| met, and that the report was supported by the           |    |   |    |
| workpapers? (GAGAS 7.52-7.54)                           |    |   |    |
+---------------------------------------------------------+----+---+----+
| When reviewing the auditor's work, did the reviewer     |    |   |    |
| adequately document reviews and provide timely          |    |   |    |
| substantive comments? Were the comments adequately      |    |   |    |
| addressed by the auditor and subsequently cleared by    |    |   |    |
| the supervisor? Were the reviewer's notes signed and    |    |   |    |
| dated to annotate the dates of review, the auditor's    |    |   |    |
| responses, and the reviewer's clearance of the review   |    |   |    |
| comments?                                               |    |   |    |
+---------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------+-----------------------------------------+----+---+----+
| ***5.        |                                         | ## | # | ## |
| Supervision  |                                         |  Y | # |  N |
| (GAGAS       |                                         | ES |   | /A |
| 7.52-7.54)   |                                         |    | N |    |
| (cont'd)***  |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Were         |                                         |    |   |    |
| supervisory  |                                         |    |   |    |
| comments     |                                         |    |   |    |
| adequately   |                                         |    |   |    |
| addressed by |                                         |    |   |    |
| the auditor  |                                         |    |   |    |
| and cleared  |                                         |    |   |    |
| timely by    |                                         |    |   |    |
| the          |                                         |    |   |    |
| supervisor?  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was the      |                                         |    |   |    |
| audit        |                                         |    |   |    |
| performed    |                                         |    |   |    |
| timely and   |                                         |    |   |    |
| was the      |                                         |    |   |    |
| audit report |                                         |    |   |    |
| issued       |                                         |    |   |    |
| timely?      |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+---------------------------------------------------------+----+---+----+
| ***6. Evidence and Audit Documentation (GAGAS           | ## | # | ## |
| 7.55-7.84)***                                           |  Y | # |  N |
|                                                         | ES |   | /A |
|                                                         |    | N |    |
|                                                         |    | O |    |
+=========================================================+====+===+====+
| Did the audit workpapers include purpose, source,       |    |   |    |
| results, and conclusions sections, as appropriate?      |    |   |    |
| Also, did the workpapers cross-reference the applicable |    |   |    |
| audit objective and test? (GAGAS 7.77)                  |    |   |    |
+---------------------------------------------------------+----+---+----+
| Did the workpapers include the initials/name of the     |    |   |    |
| preparer and the date the workpaper was prepared, as    |    |   |    |
| well as the initials/name of the reviewer and the date  |    |   |    |
| the workpapers were reviewed?                           |    |   |    |
+---------------------------------------------------------+----+---+----+
| Were the findings and conclusions in the report fully   |    |   |    |
| supported by sufficient, competent, and relevant        |    |   |    |
| evidence obtained or developed during the audit? Could  |    |   |    |
| other evidential matter have corroborated oral          |    |   |    |
| testimony?                                              |    |   |    |
|                                                         |    |   |    |
| (GAGAS 7.55-7.77)                                       |    |   |    |
+---------------------------------------------------------+----+---+----+
| Were all the elements of the finding developed and      |    |   |    |
| documented in the workpapers? If not, were scope        |    |   |    |
| limitations documented in the workpapers and included   |    |   |    |
| in the report? (GAGAS 7.72-7.76)                        |    |   |    |
+---------------------------------------------------------+----+---+----+
| Were the workpapers properly cross-referenced (e.g.,    |    |   |    |
| all summaries indexed to supporting workpapers and the  |    |   |    |
| audit plan cross-referenced to the workpapers)?         |    |   |    |
+---------------------------------------------------------+----+---+----+
| Were audit recommendations reasonable based on the      |    |   |    |
| audit evidence?                                         |    |   |    |
+---------------------------------------------------------+----+---+----+
| Did the workpapers support audit outcomes claimed in    |    |   |    |
| the report? Did the workpapers include evidence that    |    |   |    |
| the outcomes were discussed with management?            |    |   |    |
+---------------------------------------------------------+----+---+----+
| Were there issues identified during the audit that were |    |   |    |
| not included in the report? (GAGAS 8.19)                |    |   |    |
+---------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------+-----------------------------------------+----+---+----+
| ***6.        |                                         | ## | # | ## |
| Evidence and |                                         |  Y | # |  N |
| Audit        |                                         | ES |   | /A |
| D            |                                         |    | N |    |
| ocumentation |                                         |    | O |    |
| (GAGAS       |                                         |    |   |    |
| 7.55-7.84)   |                                         |    |   |    |
| (cont'd)***  |                                         |    |   |    |
+==============+=========================================+====+===+====+
| If data from |                                         |    |   |    |
| co           |                                         |    |   |    |
| mputer-based |                                         |    |   |    |
| systems were |                                         |    |   |    |
| significant  |                                         |    |   |    |
| to the audit |                                         |    |   |    |
| findings,    |                                         |    |   |    |
| did the      |                                         |    |   |    |
| auditor      |                                         |    |   |    |
| obtain       |                                         |    |   |    |
| evidence     |                                         |    |   |    |
| about the    |                                         |    |   |    |
| reliability  |                                         |    |   |    |
| of the data  |                                         |    |   |    |
| by either    |                                         |    |   |    |
| (a)          |                                         |    |   |    |
| determining  |                                         |    |   |    |
| that the     |                                         |    |   |    |
| data were    |                                         |    |   |    |
| validated by |                                         |    |   |    |
| other        |                                         |    |   |    |
| auditors or  |                                         |    |   |    |
| (b) directly |                                         |    |   |    |
| testing the  |                                         |    |   |    |
| data? (GAGAS |                                         |    |   |    |
| 7.65)        |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If the audit |                                         |    |   |    |
| involved     |                                         |    |   |    |
| computer     |                                         |    |   |    |
| matching,    |                                         |    |   |    |
| was this     |                                         |    |   |    |
| process      |                                         |    |   |    |
| performed in |                                         |    |   |    |
| accordance   |                                         |    |   |    |
| with TIGTA   |                                         |    |   |    |
| guidelines?  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If           |                                         |    |   |    |
| statistical  |                                         |    |   |    |
| sampling was |                                         |    |   |    |
| not used,    |                                         |    |   |    |
| was the      |                                         |    |   |    |
| sample size  |                                         |    |   |    |
| adequate in  |                                         |    |   |    |
| relation to  |                                         |    |   |    |
| the          |                                         |    |   |    |
| population?  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| If           |                                         |    |   |    |
| applicable,  |                                         |    |   |    |
| was there    |                                         |    |   |    |
| audit        |                                         |    |   |    |
| d            |                                         |    |   |    |
| ocumentation |                                         |    |   |    |
| to           |                                         |    |   |    |
| adequately   |                                         |    |   |    |
| support a    |                                         |    |   |    |
| decision not |                                         |    |   |    |
| to follow    |                                         |    |   |    |
| GAGAS?       |                                         |    |   |    |
| (GAGAS 7.81) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+--------------+-----------------------------------------+----+---+----+
| ***6a.       |                                         | ## | # | ## |
| Sampling     |                                         |  Y | # |  N |
| Plan***      |                                         | ES |   | /A |
|              |                                         |    | N |    |
|              |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Was a        |                                         |    |   |    |
| sampling     |                                         |    |   |    |
| plan         |                                         |    |   |    |
| completed    |                                         |    |   |    |
| and          |                                         |    |   |    |
| approved, if |                                         |    |   |    |
| applicable?  |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did audit    |                                         |    |   |    |
| d            |                                         |    |   |    |
| ocumentation |                                         |    |   |    |
| adequately   |                                         |    |   |    |
| support the  |                                         |    |   |    |
| universe,    |                                         |    |   |    |
| sampling     |                                         |    |   |    |
| plan, and    |                                         |    |   |    |
| sampling     |                                         |    |   |    |
| criteria?    |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| sampling     |                                         |    |   |    |
| plan         |                                         |    |   |    |
| properly     |                                         |    |   |    |
| de           |                                         |    |   |    |
| fine/address |                                         |    |   |    |
| various      |                                         |    |   |    |
| attributes   |                                         |    |   |    |
| of the       |                                         |    |   |    |
| sample       |                                         |    |   |    |
| including    |                                         |    |   |    |
| error rates, |                                         |    |   |    |
| sample       |                                         |    |   |    |
| intervals,   |                                         |    |   |    |
| confidence   |                                         |    |   |    |
| levels, etc? |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Did the      |                                         |    |   |    |
| sampling     |                                         |    |   |    |
| plan provide |                                         |    |   |    |
| a sound      |                                         |    |   |    |
| basis for    |                                         |    |   |    |
| projecting   |                                         |    |   |    |
| results?     |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

+--------------+-----------------------------------------+----+---+----+
| ***6b.       |                                         | ## | # | ## |
| Internal     |                                         |  Y | # |  N |
| Controls***  |                                         | ES |   | /A |
|              |                                         |    | N |    |
|              |                                         |    | O |    |
+==============+=========================================+====+===+====+
| Was an       |                                         |    |   |    |
| evaluation   |                                         |    |   |    |
| of internal  |                                         |    |   |    |
| controls     |                                         |    |   |    |
| necessary    |                                         |    |   |    |
| considering  |                                         |    |   |    |
| the audit    |                                         |    |   |    |
| scope? If    |                                         |    |   |    |
| so, were     |                                         |    |   |    |
| sufficient   |                                         |    |   |    |
| tests        |                                         |    |   |    |
| conducted to |                                         |    |   |    |
| determine    |                                         |    |   |    |
| the adequacy |                                         |    |   |    |
| of the       |                                         |    |   |    |
| auditee's    |                                         |    |   |    |
| internal     |                                         |    |   |    |
| control      |                                         |    |   |    |
| system?      |                                         |    |   |    |
| (GAGAS       |                                         |    |   |    |
| 7.16-7.27)   |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Was the      |                                         |    |   |    |
| assessment   |                                         |    |   |    |
| of key       |                                         |    |   |    |
| internal     |                                         |    |   |    |
| controls     |                                         |    |   |    |
| documented   |                                         |    |   |    |
| in the       |                                         |    |   |    |
| workpapers?  |                                         |    |   |    |
| (GAGAS 7.77) |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| Were the     |                                         |    |   |    |
| nature,      |                                         |    |   |    |
| timing, and  |                                         |    |   |    |
| extent of    |                                         |    |   |    |
| the work     |                                         |    |   |    |
| performed in |                                         |    |   |    |
| this area    |                                         |    |   |    |
| sufficient   |                                         |    |   |    |
| to meet the  |                                         |    |   |    |
| audit        |                                         |    |   |    |
| objectives   |                                         |    |   |    |
| and support  |                                         |    |   |    |
| the          |                                         |    |   |    |
| conclusions  |                                         |    |   |    |
| in the       |                                         |    |   |    |
| report?      |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+
| ### COMMENTS |                                         |    |   |    |
+--------------+-----------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+-------------+------------------------------------------+----+---+----+
| ***6c.      |                                          | ## | # | ## |
| Illegal     |                                          |  Y | # |  N |
| Acts,       |                                          | ES |   | /A |
| No          |                                          |    | N |    |
| ncompliance |                                          |    | O |    |
| and         |                                          |    |   |    |
| Abuse***    |                                          |    |   |    |
+=============+==========================================+====+===+====+
| During the  |                                          |    |   |    |
| audit, did  |                                          |    |   |    |
| the         |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| assess the  |                                          |    |   |    |
| risk that   |                                          |    |   |    |
| illegal     |                                          |    |   |    |
| acts could  |                                          |    |   |    |
| have        |                                          |    |   |    |
| occurred?   |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 7.28-7.35)  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Based on    |                                          |    |   |    |
| the         |                                          |    |   |    |
| assessment  |                                          |    |   |    |
| of risk,    |                                          |    |   |    |
| did the     |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| adequately  |                                          |    |   |    |
| test for    |                                          |    |   |    |
| violations  |                                          |    |   |    |
| and         |                                          |    |   |    |
| no          |                                          |    |   |    |
| ncompliance |                                          |    |   |    |
| with laws,  |                                          |    |   |    |
| r           |                                          |    |   |    |
| egulations, |                                          |    |   |    |
| and other   |                                          |    |   |    |
| r           |                                          |    |   |    |
| equirements |                                          |    |   |    |
| that were   |                                          |    |   |    |
| identified  |                                          |    |   |    |
| as having a |                                          |    |   |    |
| significant |                                          |    |   |    |
| effect on   |                                          |    |   |    |
| the audit   |                                          |    |   |    |
| objectives? |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 7.28-7.35)  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| If the      |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| identified  |                                          |    |   |    |
| potentially |                                          |    |   |    |
| impro       |                                          |    |   |    |
| per/illegal |                                          |    |   |    |
| acts, did   |                                          |    |   |    |
| the audit   |                                          |    |   |    |
| do          |                                          |    |   |    |
| cumentation |                                          |    |   |    |
| support     |                                          |    |   |    |
| that        |                                          |    |   |    |
| appropriate |                                          |    |   |    |
| steps were  |                                          |    |   |    |
| taken to    |                                          |    |   |    |
| contact     |                                          |    |   |    |
| inv         |                                          |    |   |    |
| estigations |                                          |    |   |    |
| and/or      |                                          |    |   |    |
| legal       |                                          |    |   |    |
| counsel?    |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 7.21, 8.23) |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| assess the  |                                          |    |   |    |
| impact of   |                                          |    |   |    |
| potential   |                                          |    |   |    |
| integrity   |                                          |    |   |    |
| issues      |                                          |    |   |    |
| identified  |                                          |    |   |    |
| on their    |                                          |    |   |    |
| audit       |                                          |    |   |    |
| results?    |                                          |    |   |    |
| Was audit   |                                          |    |   |    |
| work        |                                          |    |   |    |
| expanded    |                                          |    |   |    |
| ap          |                                          |    |   |    |
| propriately |                                          |    |   |    |
| if fraud,   |                                          |    |   |    |
| illegal     |                                          |    |   |    |
| acts, or    |                                          |    |   |    |
| violations  |                                          |    |   |    |
| had         |                                          |    |   |    |
| occurred?   |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 7.28-7.35)  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| obtain      |                                          |    |   |    |
| legal       |                                          |    |   |    |
| counsel to  |                                          |    |   |    |
| interpret   |                                          |    |   |    |
| laws and    |                                          |    |   |    |
| regulations |                                          |    |   |    |
| when        |                                          |    |   |    |
| a           |                                          |    |   |    |
| ppropriate? |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 7.21, 8.23) |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| #           |                                          |    |   |    |
| ## COMMENTS |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+

+--------------------------------------------------------+----+---+----+
| ***7. Reporting (GAGAS 8.01-8.42)***                   | ## | # | ## |
|                                                        |  Y | # |  N |
|                                                        | ES |   | /A |
|                                                        |    | N |    |
|                                                        |    | O |    |
+========================================================+====+===+====+
| Was a message conference among the audit team, the     |    |   |    |
| Director, and the AIGA held and were the results       |    |   |    |
| documented in the workpapers? If a message conference  |    |   |    |
| was deemed not necessary by the AIGA, was this         |    |   |    |
| decision documented in the workpapers?                 |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were the results of the message conference beneficial  |    |   |    |
| in shaping the report and facilitating the reporting   |    |   |    |
| process?                                               |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were meetings with the appropriate level of IRS        |    |   |    |
| management held during the course of the audit to      |    |   |    |
| discuss potential issues?                              |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report present issues in a fair, convincing,   |    |   |    |
| and objective manner considering the extent of the     |    |   |    |
| audit work/results? (GAGAS 8.10-8.11)                  |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report explain why the audit was conducted,    |    |   |    |
| and what the objective of the audit was to accomplish? |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report identify the scope of the audit,        |    |   |    |
| including:                                             |    |   |    |
|                                                        |    |   |    |
| 1.  The relationship between the universe and what was |    |   |    |
|     audited.                                           |    |   |    |
|                                                        |    |   |    |
| 2.  The audit period covered.                          |    |   |    |
|                                                        |    |   |    |
| 3.  The organizations and geographic locations covered |    |   |    |
|     by the audit.                                      |    |   |    |
|                                                        |    |   |    |
| 4.  The kinds and sources of evidence used.            |    |   |    |
|                                                        |    |   |    |
| 5.  Problems with evidence.                            |    |   |    |
|                                                        |    |   |    |
| 6.  Significant limitations or constraints imposed on  |    |   |    |
|     the auditors.                                      |    |   |    |
+--------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+--------------------------------------------------------+----+---+----+
| ***7. Reporting (GAGAS 8.01-8.42) (cont'd)***          | ## | # | ## |
|                                                        |  Y | # |  N |
|                                                        | ES |   | /A |
|                                                        |    | N |    |
|                                                        |    | O |    |
+========================================================+====+===+====+
| Did the report adequately describe the methodology     |    |   |    |
| used, including:                                       |    |   |    |
|                                                        |    |   |    |
| 1.  Significant assumptions made.                      |    |   |    |
|                                                        |    |   |    |
| 2.  Comparative techniques applied.                    |    |   |    |
|                                                        |    |   |    |
| 3.  The criteria used.                                 |    |   |    |
|                                                        |    |   |    |
| 4.  Sampling applications and designs.                 |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report include specific findings for each      |    |   |    |
| audit objective or otherwise account for each          |    |   |    |
| objective?                                             |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report identify the criteria, condition,       |    |   |    |
| effect, plus cause for each finding, as necessary, and |    |   |    |
| were they reasonable and supportable, given the work   |    |   |    |
| performed and the facts derived?                       |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report describe the scope of work on internal  |    |   |    |
| controls and any significant internal control          |    |   |    |
| weaknesses identified? (GAGAS 8.11)                    |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report comment on the source of all            |    |   |    |
| computer-processed data and the tests performed to     |    |   |    |
| assess the validity and reliability of data, and the   |    |   |    |
| extent that such data are significant to the audit     |    |   |    |
| findings, conclusions, and recommendations? (GAGAS     |    |   |    |
| 8.13)                                                  |    |   |    |
+--------------------------------------------------------+----+---+----+
| When applicable, did the report identify potentially   |    |   |    |
| illegal acts, fraud, significant violations of         |    |   |    |
| contract, or grant agreement provisions or abuse?      |    |   |    |
| (GAGAS 8.21-8.23)                                      |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report clearly state the auditor's             |    |   |    |
| conclusions? Were the conclusions reasonable and       |    |   |    |
| complete based upon the facts derived? (GAGAS 8.27)    |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were recommendations directed at resolving the cause   |    |   |    |
| of identified problems, action-oriented, specific, and |    |   |    |
| addressed to parties that have the authority to act?   |    |   |    |
| (GAGAS 8.28-8.29)                                      |    |   |    |
+--------------------------------------------------------+----+---+----+
| Did the report contain the conformity statement that   |    |   |    |
| provided assurance that the audit was conducted in     |    |   |    |
| accordance with GAGAS? (GAGAS 8.30)                    |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were there deviations from GAGAS, did the report       |    |   |    |
| clearly state which standards were not followed and    |    |   |    |
| the reasons therefore? (GAGAS 8.31)                    |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were comments received from the auditee fairly         |    |   |    |
| presented in the report, and rebutted where            |    |   |    |
| appropriate? (GAGAS 8.32-8.37)                         |    |   |    |
+--------------------------------------------------------+----+---+----+
| How did the AIGA establish that the report was issued  |    |   |    |
| in a timely manner? If the elapsed days appear to be   |    |   |    |
| excessive given the nature and extent of the work      |    |   |    |
| performed and/or the sensitivity of the audited area,  |    |   |    |
| ask management how it satisfied itself that the        |    |   |    |
| standard had been met.                                 |    |   |    |
+--------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+-------------+------------------------------------------+----+---+----+
| ***7.       |                                          | ## | # | ## |
| Reporting   |                                          |  Y | # |  N |
| (GAGAS      |                                          | ES |   | /A |
| 8.01-8.42)  |                                          |    | N |    |
| (cont'd)*** |                                          |    | O |    |
+=============+==========================================+====+===+====+
| Did the     |                                          |    |   |    |
| report      |                                          |    |   |    |
| disclose    |                                          |    |   |    |
| all         |                                          |    |   |    |
| significant |                                          |    |   |    |
| and         |                                          |    |   |    |
| relevant    |                                          |    |   |    |
| evidence    |                                          |    |   |    |
| (i.e. was   |                                          |    |   |    |
| it          |                                          |    |   |    |
| complete)?  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          |    |   |    |
| report      |                                          |    |   |    |
| include all |                                          |    |   |    |
| significant |                                          |    |   |    |
| issues,     |                                          |    |   |    |
| non         |                                          |    |   |    |
| compliance, |                                          |    |   |    |
| and abuse?  |                                          |    |   |    |
| If not, did |                                          |    |   |    |
| the         |                                          |    |   |    |
| workpapers  |                                          |    |   |    |
| document    |                                          |    |   |    |
| co          |                                          |    |   |    |
| mmunication |                                          |    |   |    |
| of these    |                                          |    |   |    |
| issues to   |                                          |    |   |    |
| management  |                                          |    |   |    |
| and reasons |                                          |    |   |    |
| for not     |                                          |    |   |    |
| including   |                                          |    |   |    |
| the         |                                          |    |   |    |
| results?    |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 8.14-8.19)  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          |    |   |    |
| report      |                                          |    |   |    |
| include     |                                          |    |   |    |
| specific    |                                          |    |   |    |
| commen      |                                          |    |   |    |
| ts/findings |                                          |    |   |    |
| (positive   |                                          |    |   |    |
| or          |                                          |    |   |    |
| negative)   |                                          |    |   |    |
| on all the  |                                          |    |   |    |
| sub-        |                                          |    |   |    |
| objectives? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Were issues |                                          |    |   |    |
| determined  |                                          |    |   |    |
| to be       |                                          |    |   |    |
| in          |                                          |    |   |    |
| significant |                                          |    |   |    |
| addressed   |                                          |    |   |    |
| with IRS    |                                          |    |   |    |
| management  |                                          |    |   |    |
| (either     |                                          |    |   |    |
| through     |                                          |    |   |    |
| discussions |                                          |    |   |    |
| or in       |                                          |    |   |    |
| writing)?   |                                          |    |   |    |
| If so, were |                                          |    |   |    |
| these       |                                          |    |   |    |
| com         |                                          |    |   |    |
| munications |                                          |    |   |    |
| documented  |                                          |    |   |    |
| in the      |                                          |    |   |    |
| workpapers? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Were IRS    |                                          |    |   |    |
| concerns    |                                          |    |   |    |
| ap          |                                          |    |   |    |
| propriately |                                          |    |   |    |
| resolved or |                                          |    |   |    |
| discussed   |                                          |    |   |    |
| in the      |                                          |    |   |    |
| report      |                                          |    |   |    |
| (e.g.,      |                                          |    |   |    |
| Office of   |                                          |    |   |    |
| Audit       |                                          |    |   |    |
| comments)?  |                                          |    |   |    |
| Did the     |                                          |    |   |    |
| auditors    |                                          |    |   |    |
| give        |                                          |    |   |    |
| co          |                                          |    |   |    |
| nsideration |                                          |    |   |    |
| to          |                                          |    |   |    |
| elevating   |                                          |    |   |    |
| significant |                                          |    |   |    |
| di          |                                          |    |   |    |
| sagreements |                                          |    |   |    |
| to the      |                                          |    |   |    |
| Treasury    |                                          |    |   |    |
| Deputy      |                                          |    |   |    |
| Secretary?  |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 8.32-8.37)  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Was the     |                                          |    |   |    |
| written     |                                          |    |   |    |
| audit       |                                          |    |   |    |
| report      |                                          |    |   |    |
| timely      |                                          |    |   |    |
| distributed |                                          |    |   |    |
| for use by  |                                          |    |   |    |
| appropriate |                                          |    |   |    |
| officials?  |                                          |    |   |    |
| (GAGAS      |                                          |    |   |    |
| 8.43)       |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| #           |                                          |    |   |    |
| ## COMMENTS |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+

+--------------------------------------------------------+----+---+----+
| ***8. Nonaudit Services* (Applicable if nonaudit       | ## | # | ## |
| services were performed that were related to this      |  Y | # |  N |
| audit)** **(GAGAS 1.33-1.34, A3.01-A3.02, 3.26-3.30)** | ES |   | /A |
|                                                        |    | N |    |
|                                                        |    | O |    |
+========================================================+====+===+====+
| Was there adequate documentation showing that the AIGA |    |   |    |
| considered whether providing the nonaudit services     |    |   |    |
| would create a personal or organizational impairment   |    |   |    |
| in fact or appearance that adversely affects           |    |   |    |
| independence for conducting audits?                    |    |   |    |
+--------------------------------------------------------+----+---+----+
| Was there documentation showing that the services to   |    |   |    |
| be performed did not encompass auditing the AIGA's own |    |   |    |
| work or was significantly material to the subject      |    |   |    |
| matter of audits?                                      |    |   |    |
+--------------------------------------------------------+----+---+----+
| Was there a documented understanding with the audited  |    |   |    |
| entity that identified the objectives, scope of work,  |    |   |    |
| and product or deliverables, and that established that |    |   |    |
| agency's management was responsible for the            |    |   |    |
| substantive outcomes of the work?                      |    |   |    |
+--------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+-------------+------------------------------------------+----+---+----+
| ***8.       |                                          | ## | # | ## |
| Nonaudit    |                                          |  Y | # |  N |
| Services*   |                                          | ES |   | /A |
| (Applicable |                                          |    | N |    |
| if nonaudit |                                          |    | O |    |
| services    |                                          |    |   |    |
| were        |                                          |    |   |    |
| performed   |                                          |    |   |    |
| that were   |                                          |    |   |    |
| related to  |                                          |    |   |    |
| this        |                                          |    |   |    |
| audit)**    |                                          |    |   |    |
| **(GAGAS    |                                          |    |   |    |
| 1.33-1.34,  |                                          |    |   |    |
| A           |                                          |    |   |    |
| 3.01-A3.02, |                                          |    |   |    |
| 3.26-3.30)  |                                          |    |   |    |
| (cont'd)**  |                                          |    |   |    |
+=============+==========================================+====+===+====+
| Did the     |                                          |    |   |    |
| audited     |                                          |    |   |    |
| entity:     |                                          |    |   |    |
|             |                                          |    |   |    |
| 1.          |                                          |    |   |    |
|   Designate |                                          |    |   |    |
|     a       |                                          |    |   |    |
|             |                                          |    |   |    |
|  management |                                          |    |   |    |
|     level   |                                          |    |   |    |
|             |                                          |    |   |    |
|  individual |                                          |    |   |    |
|     to be   |                                          |    |   |    |
|             |                                          |    |   |    |
| responsible |                                          |    |   |    |
|     and     |                                          |    |   |    |
|             |                                          |    |   |    |
| accountable |                                          |    |   |    |
|     for     |                                          |    |   |    |
|             |                                          |    |   |    |
|  overseeing |                                          |    |   |    |
|     the     |                                          |    |   |    |
|             |                                          |    |   |    |
|    nonaudit |                                          |    |   |    |
|             |                                          |    |   |    |
|   services? |                                          |    |   |    |
|             |                                          |    |   |    |
| 2.          |                                          |    |   |    |
|   Establish |                                          |    |   |    |
|     and     |                                          |    |   |    |
|     monitor |                                          |    |   |    |
|     the     |                                          |    |   |    |
|             |                                          |    |   |    |
| performance |                                          |    |   |    |
|     of the  |                                          |    |   |    |
|             |                                          |    |   |    |
|    nonaudit |                                          |    |   |    |
|             |                                          |    |   |    |
|    services |                                          |    |   |    |
|     to      |                                          |    |   |    |
|     ensure  |                                          |    |   |    |
|     it met  |                                          |    |   |    |
|     m       |                                          |    |   |    |
| anagement's |                                          |    |   |    |
|             |                                          |    |   |    |
|  objective? |                                          |    |   |    |
|             |                                          |    |   |    |
| 3.  Make    |                                          |    |   |    |
|             |                                          |    |   |    |
|   decisions |                                          |    |   |    |
|     that    |                                          |    |   |    |
|             |                                          |    |   |    |
|    involved |                                          |    |   |    |
|             |                                          |    |   |    |
|  management |                                          |    |   |    |
|             |                                          |    |   |    |
|   functions |                                          |    |   |    |
|     related |                                          |    |   |    |
|     to the  |                                          |    |   |    |
|             |                                          |    |   |    |
|    nonaudit |                                          |    |   |    |
|             |                                          |    |   |    |
|    services |                                          |    |   |    |
|     and     |                                          |    |   |    |
|     accept  |                                          |    |   |    |
|     full    |                                          |    |   |    |
|     res     |                                          |    |   |    |
| ponsibility |                                          |    |   |    |
|     for     |                                          |    |   |    |
|     such    |                                          |    |   |    |
|             |                                          |    |   |    |
|  decisions? |                                          |    |   |    |
|             |                                          |    |   |    |
| 4           |                                          |    |   |    |
| .  Evaluate |                                          |    |   |    |
|     the     |                                          |    |   |    |
|             |                                          |    |   |    |
|    adequacy |                                          |    |   |    |
|     of the  |                                          |    |   |    |
|             |                                          |    |   |    |
|    services |                                          |    |   |    |
|             |                                          |    |   |    |
|   performed |                                          |    |   |    |
|     and any |                                          |    |   |    |
|             |                                          |    |   |    |
|    findings |                                          |    |   |    |
|     that    |                                          |    |   |    |
|             |                                          |    |   |    |
|   resulted? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          |    |   |    |
| AIGA        |                                          |    |   |    |
| prohibit    |                                          |    |   |    |
| personnel   |                                          |    |   |    |
| who         |                                          |    |   |    |
| provided    |                                          |    |   |    |
| nonaudit    |                                          |    |   |    |
| services    |                                          |    |   |    |
| from        |                                          |    |   |    |
| planning,   |                                          |    |   |    |
| conducting, |                                          |    |   |    |
| or          |                                          |    |   |    |
| reviewing   |                                          |    |   |    |
| audit work  |                                          |    |   |    |
| of the      |                                          |    |   |    |
| subject     |                                          |    |   |    |
| matter      |                                          |    |   |    |
| involving   |                                          |    |   |    |
| the         |                                          |    |   |    |
| nonaudit    |                                          |    |   |    |
| service?    |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Was the     |                                          |    |   |    |
| scope and   |                                          |    |   |    |
| extent of   |                                          |    |   |    |
| the audit   |                                          |    |   |    |
| work        |                                          |    |   |    |
| affected    |                                          |    |   |    |
| due to      |                                          |    |   |    |
| nonaudit    |                                          |    |   |    |
| services    |                                          |    |   |    |
| having been |                                          |    |   |    |
| performed?  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Were the    |                                          |    |   |    |
| i           |                                          |    |   |    |
| ndependence |                                          |    |   |    |
| r           |                                          |    |   |    |
| equirements |                                          |    |   |    |
| c           |                                          |    |   |    |
| ommunicated |                                          |    |   |    |
| in writing  |                                          |    |   |    |
| to the      |                                          |    |   |    |
| audited     |                                          |    |   |    |
| entity?     |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| #           |                                          |    |   |    |
| ## COMMENTS |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+

+--------------------------------------------------------+----+---+----+
| ***9. Quality Control Process for Each Audit (GAGAS    | ## | # | ## |
| 3.08-3.19, 3.35, 3.48, 3.50-3.58, A3.04-A3.05)***      |  Y | # |  N |
|                                                        | ES |   | /A |
|                                                        |    | N |    |
|                                                        |    | O |    |
+========================================================+====+===+====+
| Was the quality control process adequate for this      | #  | # | #  |
| assignment, were the different aspects of it           | #  | # | #  |
| implemented and effective, and did they provide an     |    |   |    |
| adequate level of assurance of compliance with GAGAS?  |    |   |    |
| Evaluate the level of assurance afforded.              |    |   |    |
+--------------------------------------------------------+----+---+----+
| Were all audit products used to communicate audit      | #  | # | #  |
| findings and recommendations (i.e., memoranda,         | #  | # | #  |
| briefing papers, discussion draft, draft, and final    |    |   |    |
| reports) referenced before issuance to IRS management? |    |   |    |
| Also, were the Outcome Measure Summary (OMS) document  |    |   |    |
| and Joint Audit Management Enterprise System (JAMES)   |    |   |    |
| Corrective Action Form (CAF) referenced before         |    |   |    |
| submission to the Office of Management and Policy?     |    |   |    |
+--------------------------------------------------------+----+---+----+
| Was the referencer a GS-12 (or above) who had          | #  | # | #  |
| sufficient experience to reference properly? Also, was | #  | # | #  |
| the referencer independent of the activities related   |    |   |    |
| to the documents being referenced?                     |    |   |    |
+--------------------------------------------------------+----+---+----+

**[Exhibit (300)-100.2 (cont'd)]{.underline}**

[Checklist for Review of Individual Performance Audits]{.underline}

+-------------+------------------------------------------+----+---+----+
| ***9.       |                                          | ## | # | ## |
| Quality     |                                          |  Y | # |  N |
| Control     |                                          | ES |   | /A |
| Process for |                                          |    | N |    |
| Each Audit  |                                          |    | O |    |
| (GAGAS      |                                          |    |   |    |
| 3.08-3.19,  |                                          |    |   |    |
| 3.35, 3.48, |                                          |    |   |    |
| 3.50-3.58,  |                                          |    |   |    |
| A           |                                          |    |   |    |
| 3.04-A3.05) |                                          |    |   |    |
| (cont'd)*** |                                          |    |   |    |
+=============+==========================================+====+===+====+
| Did an      |                                          | #  | # | #  |
| independent |                                          | #  | # | #  |
| referencer  |                                          |    |   |    |
| assure that |                                          |    |   |    |
| the         |                                          |    |   |    |
| findings    |                                          |    |   |    |
| were        |                                          |    |   |    |
| adequately  |                                          |    |   |    |
| supported   |                                          |    |   |    |
| by audit    |                                          |    |   |    |
| do          |                                          |    |   |    |
| cumentation |                                          |    |   |    |
| and         |                                          |    |   |    |
| c           |                                          |    |   |    |
| onclusions, |                                          |    |   |    |
| and that    |                                          |    |   |    |
| reco        |                                          |    |   |    |
| mmendations |                                          |    |   |    |
| flowed      |                                          |    |   |    |
| logically   |                                          |    |   |    |
| from the    |                                          |    |   |    |
| support?    |                                          |    |   |    |
|             |                                          |    |   |    |
| a.  Was the |                                          |    |   |    |
|     report  |                                          |    |   |    |
|             |                                          |    |   |    |
|   accurate? |                                          |    |   |    |
|             |                                          |    |   |    |
| b.  Did the |                                          |    |   |    |
|             |                                          |    |   |    |
| independent |                                          |    |   |    |
|             |                                          |    |   |    |
|  referencer |                                          |    |   |    |
|     verify  |                                          |    |   |    |
|     that    |                                          |    |   |    |
|             |                                          |    |   |    |
|  statements |                                          |    |   |    |
|     of      |                                          |    |   |    |
|     fact,   |                                          |    |   |    |
|             |                                          |    |   |    |
|    figures, |                                          |    |   |    |
|     and     |                                          |    |   |    |
|     dates   |                                          |    |   |    |
|     were    |                                          |    |   |    |
|             |                                          |    |   |    |
|  accurately |                                          |    |   |    |
|             |                                          |    |   |    |
|   reported? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          | #  | # | #  |
| referencer  |                                          | #  | # | #  |
| make        |                                          |    |   |    |
| substantive |                                          |    |   |    |
| comments    |                                          |    |   |    |
| about the   |                                          |    |   |    |
| report's    |                                          |    |   |    |
| contents    |                                          |    |   |    |
| and         |                                          |    |   |    |
| identify    |                                          |    |   |    |
| any major   |                                          |    |   |    |
| omissions?  |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          | #  | # | #  |
| Audit       |                                          | #  | # | #  |
| Manager     |                                          |    |   |    |
| properly    |                                          |    |   |    |
| respond to  |                                          |    |   |    |
| the         |                                          |    |   |    |
| r           |                                          |    |   |    |
| eferencer's |                                          |    |   |    |
| comments?   |                                          |    |   |    |
| If the      |                                          |    |   |    |
| referencer  |                                          |    |   |    |
| was a       |                                          |    |   |    |
| member of   |                                          |    |   |    |
| the Audit   |                                          |    |   |    |
| Manager's   |                                          |    |   |    |
| staff, did  |                                          |    |   |    |
| the         |                                          |    |   |    |
| Director    |                                          |    |   |    |
| ove         |                                          |    |   |    |
| rsee/manage |                                          |    |   |    |
| the         |                                          |    |   |    |
| referencing |                                          |    |   |    |
| process     |                                          |    |   |    |
| (i.e.,      |                                          |    |   |    |
| provide     |                                          |    |   |    |
| direction   |                                          |    |   |    |
| to the      |                                          |    |   |    |
| referencer, |                                          |    |   |    |
| addr        |                                          |    |   |    |
| ess/resolve |                                          |    |   |    |
| referencer  |                                          |    |   |    |
| comments,   |                                          |    |   |    |
| etc.) and   |                                          |    |   |    |
| were the    |                                          |    |   |    |
| r           |                                          |    |   |    |
| eferencer's |                                          |    |   |    |
| comments    |                                          |    |   |    |
| reported to |                                          |    |   |    |
| the         |                                          |    |   |    |
| Director    |                                          |    |   |    |
| versus the  |                                          |    |   |    |
| Audit       |                                          |    |   |    |
| Manager?    |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          | #  | # | #  |
| Audit       |                                          | #  | # | #  |
| Manager     |                                          |    |   |    |
| "pass" on   |                                          |    |   |    |
| any of the  |                                          |    |   |    |
| r           |                                          |    |   |    |
| eferencer's |                                          |    |   |    |
| comments    |                                          |    |   |    |
| that should |                                          |    |   |    |
| have been   |                                          |    |   |    |
| addressed?  |                                          |    |   |    |
| Were the    |                                          |    |   |    |
| Audit       |                                          |    |   |    |
| Manager's   |                                          |    |   |    |
| decisions   |                                          |    |   |    |
| to "pass"   |                                          |    |   |    |
| appropriate |                                          |    |   |    |
| and         |                                          |    |   |    |
| adequately  |                                          |    |   |    |
| documented? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Were any    |                                          | #  | # | #  |
| changes     |                                          | #  | # | #  |
| made to the |                                          |    |   |    |
| report, OMS |                                          |    |   |    |
| document,   |                                          |    |   |    |
| or JAMES    |                                          |    |   |    |
| CAF after   |                                          |    |   |    |
| they were   |                                          |    |   |    |
| referenced? |                                          |    |   |    |
| If so, were |                                          |    |   |    |
| the changes |                                          |    |   |    |
| re-         |                                          |    |   |    |
| referenced? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          | #  | # | #  |
| referencer  |                                          | #  | # | #  |
| and Audit   |                                          |    |   |    |
| Manager     |                                          |    |   |    |
| sign-off on |                                          |    |   |    |
| the         |                                          |    |   |    |
| r           |                                          |    |   |    |
| eferencer's |                                          |    |   |    |
| report upon |                                          |    |   |    |
| completion  |                                          |    |   |    |
| of the      |                                          |    |   |    |
| assignment? |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| Did the     |                                          | #  | # | #  |
| Director    |                                          | #  | # | #  |
| review and  |                                          |    |   |    |
| approve the |                                          |    |   |    |
| r           |                                          |    |   |    |
| eferencer's |                                          |    |   |    |
| comments    |                                          |    |   |    |
| and the     |                                          |    |   |    |
| Audit       |                                          |    |   |    |
| Manager's   |                                          |    |   |    |
| responses   |                                          |    |   |    |
| prior to    |                                          |    |   |    |
| report      |                                          |    |   |    |
| issuance?   |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+
| #           |                                          |    |   |    |
| ## COMMENTS |                                          |    |   |    |
+-------------+------------------------------------------+----+---+----+