Licensing Terms

1. You accept that this product is intended for your use, and you will not
duplicate in any form or manner, electronic or otherwise, copies of this
product nor distribute this product to anyone else.

2. You recognize that the product and its content are the sole property of
AuditNet® (the Publisher), and that we have copyrighted the product.

3. You agree that the Publisher is not responsible for any interruption of
service or malfunction that is a consequence of the Internet, a service
provider, personal computer, browser or other software or hardware
components. You accept that there is no guarantee that this product is totally
error free. You further understand and accept that the Publisher intends to
provide reliable information but does not guarantee the accuracy or
completeness of any information, and is not responsible for any results
obtained from the use of such information.

4 This license is effective until terminated, when the license or subscription

period ends without renewal, or when you destroy this product and any
related documentation. The Publisher may terminate your license without
notice if you fail to comply with the conditions set forth in this agreement, and
may pursue any other legal recourse.
Complete this checklist and apply audit procedures prescribed in relevant audit program for the question client answered "YES", evaluate the internal
controls and report the observations along with recommendations (if any.), for the Questions answered "NO" report as ineffective based on relevance of the
internal control activity and regulations (e.g. SOX), etc.

Client Name Date Completed:

Audit Questionnaire: Vehicles Completed By:
Business Function: Admin and Human Resource department Reviewed By:

Objective:
1) Management handles the vehicle fleet administration efficiently and has established a formal and documented policy relating to company vehicles.
2) All vehicles purchased are valid and utilized for a defined purpose and vehicles are purchased at favorable cost.
3) Handling of vehicle maintenance is effectively & efficiently and all expenses relating to vehicles are valid and accurately, completely recorded i.e. operating costs/fuel cost
and depreciation, etc.
5) All accidents and damage are reported timely; warrant claims/insurance is claimed accurately and satisfactorily settled.
6) All vehicles operations relevant regulations are complied.
7) All disposals and write-offs are completely, correctly and accurately accounted for and are valid.

Serial # Control Activities Yes No* Comments /Description Employee Responsible for Task

A suitable vehicle policy has been established by management

which is reviewed periodically and the vehicle policy adequately
1.1 defines the authorized vehicle types and applicable staff
categories.
Adequate security measures (i.e. vehicle tracking devices are
1.2 installed) are in existence to protect company vehicles from
theft.

Fleet management information provided is accurate and timely

1.3 and follow-up action is taken for anomalies evidenced (if any).
Serial # Control Activities Yes No* Comments /Description Employee Responsible for Task
There is a mechanism in existence through which vehicles
1.4 having excessive maintenance costs and the vehicles disposal
dates are identified.

All vehicles purchased are in accordance with company policies

2.1 relating to vehicle purchases and all purchased are accurately
accounted for.
There are authorized/approved and reputable dealers from
where vehicles are purchased and assessment of cost is done
2.2 before purchasing to ensure the reasonableness of purchase
prices.
Management has adequate procedures to prevent the purchase
2.3 of unauthorized vehicles.

Usage of the vehicle is monitored by managed so that is its

2.4 ensured that the vehicles are utilized for the defined purpose.

Vehicle costs are accurately determined so that it is accurately

2.5 and correctly recorded in books (i.e. in the fixed assets records).

All new vehicles are subject to inspection and faulty or damaged

2.6 vehicles are detected and rejected.
Management has established a vehicle price limits and There
are processes in existence which prevent the purchases from
2.7 exceeding the limit. Furthermore, appropriate discounted terms
are arranged with manufacturers in the event of quantity
purchases.

All vehicle operating costs are examined and Is there a

mechanism in existence through which non-company vehicle
3.1 costs are identified and only company vehicles' costs are
processed and reimbursed.
Only authorized employees have been provided the fuel cards
3.2 and Fuel costs are reported, adequately monitored, and
followed-up by management.
Only justified, appropriate, and authorized fuel costs are
3.3 accounted for and Unusually high vehicle servicing costs for an
individual vehicle are detected and investigated.
Serial # Control Activities Yes No* Comments /Description Employee Responsible for Task
Management has adopted a vehicle depreciation policy that
3.4 follows normal accounting practice.

Management reviews the depreciation rates and methods of

3.5 calculation to ensure that they are reasonable and in accordance
with generally accepted accounting principles.

Is there an authorized policy established for vehicle fuel costs

3.6 and unauthorized or invalid fuel costs (i.e. for personal travel)
are prevented.
All drivers acknowledge their responsibilities for vehicles
allocated to them and made to sign for the vehicle in good
3.7 condition upon allocation and are aware of their responsibilities
in the event of an accident.

A maintenance policy is established and authorized which

3.8 defines the conditions, charges and performance criteria.

Vehicles are serviced and maintained in accordance with the

3.9 manufacturers' recommendations and relevant warranty
conditions.
Emergency and out of hours breakdown facilities are cost-
3.10 effectively provided and the relative costs monitored by
management

3.11 Management has adequately insured all company vehicles.

Appropriate managerial staff reviews and approves the vehicle

3.12 maintenance and repair costs.
Maintenance and repairs are conducted only by suitably
3.13 qualified and authorized suppliers to adhere with the necessary
standard.

All accidents involving company vehicles are correctly reported,

5.1 processed and settled through the insurers.
All accident repair costs are justified, authorized, and reclaimed
5.2 from insurers whenever possible.
The warranty claims are settled without undue delay and
5.3 measures in place to review unsettled claims.

Management conducts reviews of warranty services to ensure

5.4 that all the appropriate warranty services are obtained.
Serial # Control Activities Yes No* Comments /Description Employee Responsible for Task
All accident or damage is suitably inspected and assessed for
5.5 repair cost in order that actual costs are reasonable and
authorized.
Accident or damage claims (Insurance and Warranty) are
5.6 adequately monitored to ensure prompt and appropriate
settlement.

Management reviews that controls are in place to ensure that all

legal and regulatory matters are correctly dealt with (i.e. road
6.1 fund licenses, adequate insurance cover, vehicle
roadworthiness, legal emission levels, etc.).
Management examines that company vehicle drivers are (and
6.2 remain) correctly licensed and eligible.

Management has a documented policy governing the disposal of

7.1 vehicles.

Vehicles for disposal are identified and the basis for disposal is
7.2 at the optimum time for the company and the resale market.

Management establishes authorized disposal methods for

7.3 company vehicles (i.e. via car auctions, dealers, staff sales,
etc.).
The gain/loss from such disposal proceeds are fully accounted
7.4 for.
Management disposes the vehicles based on the fair market
value of such vehicles and all vehicles are assessed for their
7.5 likely disposal value and monitored to ensure that the actual
proceeds are reasonable.
Disposal proceeds are subject to management authority and
7.6 monitoring.
All vehicle write-offs are justified and suitably authorized and
7.7 unauthorized write-off of a vehicle are prevented.
Serial # Control Activities Yes No* Comments /Description Employee Responsible for Task

To the best of my knowledge, the answers

and comments noted above are accurate and
Name and Title of Department Director (please print)
reflect the current internal controls within
this department:

Signature of Department Director

Name and Title of Person Completing Form (please print)

Date of Department Director's Signature

Signature of Person Completing Form

7/19/2021
Date Form Completed