Engagement Memo—Audit of Background Checks

We are initiating an audit of the Companyʹs process for conducting background checks for employees and contractors. Our objectives are to assess (1) the effectiveness and efficiency of the company’s process for conducting background investigations to help ensure prospective employees and contractors are qualified, honest, reliable, and do not pose a security threat; and (2) the company’s oversight of the contractors charged with conducting background investigations.

During the audit, we plan to interview company officials and contractors performing background checks. We also plan to analyze documents and data related to processing employee and contractor hires. Our request for documents will be made as our work progresses. We also will work to minimize the impact of the audit by coordinating interviews and observations with staff in advance.