Engagement Memo – Audit of the Potential Effect of Drug and Alcohol Use on Company Operations (Project 004-2017)

We are initiating an audit of the company’s efforts to minimize the risks associated with employees’ drug and alcohol use, especially for those in safety-sensitive positions. Our audit objective is to assess the effectiveness of the company’s efforts to deter, detect and control the use of illegal and prescription drugs and alcohol by employees in safety-sensitive positions.

During the audit, we plan to interview company officials, analyze documents and data, and evaluate the company’s management controls and oversight of these activities. We will also analyze employees’ medical and prescription drug claims and the company’s drugs and alcohol test results during calendar years 2014 through 2016 to help identify trends and the potential effect of employees’ use of drugs and alcohol on the company’s operations. We will minimize disruptions to the company by coordinating meetings with staff in advance.