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COSO CONTROL COMPONENT: MONITORING CONTROL ACTIVITIES
COSO PRINCIPLE NO. 16 & 17
COSO CONTROL OBJECTIVE: Company Vehicle Management.
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL

Carry out the monitoring activities on internal controls implemented in the organization as per listed below procedures and prepare an evaluation of internal controls
the deficiencies identified during the evaluation of internal controls. you can prepare an Internal Audit report for communicating the internal control deficiencies iden

Objective:

1) Ensure that appropriate vehicle policy is established as well as implemented and in all vehicles are properly administrated as well as handled.
2) Ensure that all vehicles are bought within the budget and appropriately used for defined purposes.
3) Ensure that all vehicle cost and related fuel cost including depreciation are accurately recorded.
4) Ensure that all maintenance expenses in relation to the vehicles are dealt with efficiently.
5) Ensure that accidents/damages are promptly reported and related insurance claim is properly settled.
6) Ensure that all company's vehicles are used legally and in accordance with the relevant rules and regulations.
7) Ensure that all disposal and write-offs in relation to the vehicles are accurately accounted for.

Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Obtain understanding of the company's
vehicle policy and verify its
1.1 appropriateness by way of documented
vehicle policy.

Check that the vehicle policy is

1.2 periodically reviewed by the appropriate
level of management.

Verify the defined staff vehicle types by

1.3 examining the documented company
vehicle policy.

Obtain a list of all vehicles purchased

1.4 during the course of review and select a
sample from population.

Check that selected vehicles are

1.5 purchased in accordance with the
company's vehicle policy.

Physically visit the location where the

vehicles are parked and ensure that the
1.6 vehicles are secured from damages or
theft.

Ensure that appropriate security

1.7 measures are taken for vehicles
protection.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Check that the appropriate level of
1.8 management is periodically monitors the
security measures.

Verify the report in relation to the vehicle

fleet which is provided to the appropriate
1.9 level of management in order to review
the report periodically.

Check that in case of issue is occurred it

1.20 must be investigated and timely resolved.

Evaluate that the system has the alert

1.21 option for monitoring the upcoming
events.

Select a sample from the list and

1.22 examine that the system is operating in
an efficient manner.

Obtain the list of all vehicles purchased

on account of the company during the
2.1 course of review and select a sample
from the population.

Check that all purchased vehicles Verify

2.2 if the purchases are made in accordance
with the company policy.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Obtain the list of all vehicles purchased
on account of the company during the
2.3 course of review and select a sample
from the population.

Check that all vehicles are bought from

2.4 the dealers who are on the approved
dealer list.

Verify that the purchases are authorized

by the management level in accordance
2.5 with the authorization matrix.

Evaluate that all purchases are justified

as well as assessed the assurance of
2.6 purchased all vehicles at their optimum
cost.

Obtain the list of all vehicles purchased

on account of the company during the
2.7 course of review and select a sample
from the population.

Check that the appropriate evidence are

available in respect of vehicle inspection
2.8 purchased during the course of review.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Obtain the list of all vehicles purchased
on account of the company during the
2.9 course of review and select a sample
from the population.

Check the selected sample of vehicle

purchased during the course of review
2.10 and evaluate that all vehicles are
appropriately recorded in support of
documentary evidence.

Obtain understanding of the policy in

2.11 relation to the price limits for vehicles
purchased.

Check that all vehicles purchased during

2.12 the course of review are with the limit
specified in the company's policy.

Verify that in case of any cost exceeding

the prescribed limit proper authorization
2.13 should be there in accordance with the
authorization matrix.

Obtain the formal agreement executed

2.14 between the suppliers and company in
relation to the vehicle purchased.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Ensure that the company avails the bulk
2.15 purchased discount from the supplier as
per the formal agreement.

Discuss with management and determine

2.16 the procedure for procurement of
vehicles.

Verify that all vehicles purchased during

the course of review are periodically
2.17 reviewed in order to distinguish with the
unauthorized purchase.

Verify that proper monitoring procedure

are available to check the usage of the
2.18 vehicles by the management.

Check that all vehicles are used for

2.19 defined purpose and in accordance with
the company's policy.

Verify that the operating cost in relation

3.1 to the vehicles are periodically reviewed
by the management.

Obtain a list of vehicle purchased during

3.2 the course of review and select a sample
of vehicle operating costs.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.

Check that the cost associated with the

3.3 vehicles are accurately accounted for in
the accounts.

Evaluate that the cost are properly

approved by the personnel in accordance
3.4 with the authorization matrix.

Verify that cost related to the servicing of

3.5 the vehicles are appropriately reviewed
and approved.

Check that all servicing cost are

3.6 periodically reviewed by the
management.

Examine the unusual high service cost

3.7 associated with the vehicles and
investigate the matter.

Obtain understanding of the depreciation

policy adopted by the company and
3.8 ensure is appropriateness.

Check that the depreciation policy is

3.9 appropriately approved by the
management level.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.

Obtain the fixed assets schedule of the

3.10
period under review.

Obtain a list of vehicles purchased prior

or during the course of review and select
3.11 a sample from the population.

Perform the depreciation calculation in

order to verify that it is properly
3.12 calculated and reflected in the financials.

Verify that management review the

3.13 depreciation calculation on periodical
basis.

Discuss with management and identify

3.14
how the fuel cost are reviewed.

Check that fuel cost are reviewed by the

3.15
management on periodical basis.

Verify that the fuel cost associated with

the vehicles are properly authorized in
3.16 accordance with the authorization matrix.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Obtain the policy in relation to the fuel
3.17
cost and evaluate its appropriateness.

Check that the policy is authorized in

3.18 accordance with the authorization matrix.

Identify the control for prevention of

3.19 invalid fuel costs and check that it is
operating effectively.

Verify that all fuel cost are properly

3.20
accounted for.

Check that the fuel cost are properly

3.21 monitored by the management
periodically.

Obtain the list of vehicle's driver and

4.1 verify that proper signature of the drivers
are available.

Discuss with driver in order to ensure

4.2 that they are well aware of their
responsibilities.

Verify that whether the management has

4.3 made aware of the drivers regarding their
responsibilities.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Select a sample of company vehicles
4.4 and Check that every vehicles are
properly insured.

Evaluate that the management has made

4.5 awareness of the drivers' responsibilities
in case of accidents.

Obtain a list of all maintenance and

repair costs in relation to the vehicles
4.6 occurred during the course of review and
select a sample from the population.

Examine that the cost referred above are

appropriately authorized in accordance
4.7 with the authorization matrix.

Select a sample of maintenance and

4.8 repair cost associated with the vehicle
occurred during the course of review.

Check that all such repair are done by

4.9
the experienced personnel.

Verify that all such supplies for repair

4.10 purpose are acquired from the approved
vendors.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Obtain understanding of the maintenance
4.11 and servicing policy established by the
company.

Check that the policy is updated and

4.12 properly approved by the appropriate
level of management.

Evaluate that is there any conditions or

4.13
performance criteria exists.

Verify that all vehicles going for

maintenance are in accordance with the
4.16 manufacturers' recommendations and
warranty conditions.

Examine the documents in order to

identify that the vehicles are maintained
4.17 in compliance with the manufacturers'
recommendations.

Obtain a list of claimed settled during the

5.1 course of review and select a sample
from the population.

Check that all claims are settled with the

5.2
specified time period.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Examine that the management review
the claims on periodical basis and in
5.3 case of any unsettled claim it should be
identified.

Discuss with management and obtain

understanding of the process available in
5.4 order to ensure that all accidents are
properly recorded and related claims are
settled.

Select a sample of recent accidents in

order to ensure that the process referred
5.5 in step 1 above is in compliance with.

Check all the records maintained for

5.6 reporting of accidents and select a
sample from the population.

Evaluate that every damaged vehicle is

5.7
properly examine after an accident.

Verify that every accident case is

properly reported to the insurance
5.8 company and settle the case within the
specified time period.

Verify if an estimate is created prior to

5.9
having actual repairs done.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.

Check that repair cost incurred during the

course of review are reasonable and
5.10 compare with the estimated repair cost.

Ensure that all repair cost associated

5.11 with the vehicles are claimed from the
insurers.

Verify that the repair costs are authorized

by the personnel in accordance with the
5.12 authorization matrix.

Evaluate all relevant regulation and

6.1
check the compliance.

Obtain the list of various matters which

6.2 are properly complied and select a
sample.

Check that all regulations in respect of

6.3
licenses are complied with.

Obtain a list of company's drivers and

6.4
select a sample from the population.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Check that all the drivers have their valid
6.5 and up to date license and eligibility
requirements.

Discuss with management and obtain

understanding of the policy available in
7.1 relation to the disposal of vehicles and
check its reasonableness.

Obtain a list of all vehicles disposed off

7.2 during the course of review and select a
sample from the population.

Check that all vehicles disposed off

7.3 during the course of review are in
compliance with the company's policy.

Discuss with management and identify

7.4 the optimum disposal times of the
vehicles.

Obtain a list of all vehicles disposed off

7.5 during the course of review and select a
sample from the population.

Check that all disposals made during the

course of review are properly reviewed
7.6 periodically in order to ascertain optimum
time and price.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Using the above sample, verify the Fair
7.3 Market Value (FMV) which is obtained for
verification purpose.

Check that disposal of the vehicles are

7.4 made as per the optimum disposal time
as mentioned in the policy.

Verify that all vehicles are disposed off in

7.5
accordance with the FMV.

Obtain a list of all vehicles disposed off

7.6 during the course of review and select a
sample from the population.

Check the disposal proceeds of the

7.7 selected sample and ensure that it is
accurately recorded in the accounts.

Examine that the disposal proceeds are

7.8 received within the stipulated time period
and accounted for.

Obtain a list of all vehicles disposed off

7.9 during the course of review and select a
sample from the population.
Objective & I. C.
Auditor Time Date Date Checked
Questionnaire Audit Procedures WP Ref
Initials Spent Expected Finished By:
Ref.
Check that all disposals are properly
authorized by the personnel in
7.10 accordance with the authorization matrix.

Verify that the management monitors the

7.11
disposals on periodical basis.

Obtain a list of all vehicles written off

7.12
during the course of review.

Check that the write off of vehicles are

authorized by the personnel in
7.13 accordance with the authorization matrix.

Verify that the vehicles write off are

7.14
accurately accounted for.
 dures and prepare an evaluation of internal controls and communicate
communicating the internal control deficiencies identified.

properly administrated as well as handled.

d.
egulations.

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