I.   Introductory Provisions

Audits are the twenty-seventh of thirty-three (33) Administrative Elements of Trust being annual surveys of the administrative elements of a Trust to determine if the Rules and Standards have been properly met.

As a proper Audit constitutes a proper assessment of the standards, methods, accuracy, quality and controls of financial reporting and controls of the administration of a Trust or Estate or Fund, the position of Auditor is considered necessary to be independent and at “arms length” to eliminate any question of conflict of interest.

In terms of a valid Trust, or Estate or Fund, there exists four elements of Audit being Standards, Methods, Accuracy, Quality and Controls:

(i) Standards Audit is the analysis and assessment of the existence and implementation of standards of terms, forms, systems, procedures in the administration of a Trust or Estate or Fund; and

(ii) Methods Audit, also known as Business Process Analysis is the analysis of the core processes, forms, applications and systems used based on the standards; and

(iii) Accuracy Audit is the analysis and assessment of the accuracy of records, record keeping, documentation and procedures; and

(iv) Quality Audit is the analysis and assessment of the quality of core processes, supplier and customer satisfaction and commitment to excellence; and

(v) Controls Audit is the analysis of internal safety controls to prevent issues, fraud or disaster and how the Trust or Estate or Fund is able to respond.