State of Washington Classified Job Specification
LABOR & INDUSTRIES AUDITOR 2
For the Department of Labor and Industries, audits an employer’s financial records, business activities, and functions to establish premium liability and compliance with industrial insurance laws, rules, and regulations and educates employers, either individually and/or in workshops, of their individual insurance premium reporting responsibilities.
Determines the most viable service program (education or audit) to reduce non-compliance with employers;
Under the direction of a journey auditor or higher level, performs desk and/or audits, examines business’s financial records, contracts, systems accounting procedures and conducts appropriate interviews with management, staff and contractors to determine compliance with industrial insurance or employment security laws, rules, and regulations;
Under the direction of a journey auditor or above, prepares for an audit tailored to the industry and business-specific issues presented by an audit;
Evaluates business’s accounting system, and develops a specific audit plan, under the direction of a journey auditor or above, decides what level of audit will be conducted and ascertains the sources that will be used to successfully complete the audit, and what level of external verification is necessary;
Audits and investigates businesses to make employer/employee determinations on Workers’ Compensation claims;
Performs intensive investigations and assessments on the sale of goods and services that are hidden from official view (underground economy);
Researches classifications and industries, reviews and analyze contracts, assesses prime contractor liability debts when subcontractors fail to pay premiums;
During on-site audits, assesses the physical environment of the business’s operations in addition to interviews performed and records reviewed in order to determine proper industrial insurance risk classification of employees;
Reviews and analyze contracts;
Conducts interviews and analyzes tax and wage reporting history to prepare estimated reports;
Learns and applies the use of relevant tools in order to estimate premiums when employers fail to submit records, submit records that are incomplete, or when faced with cash payment and falsification of documentation;
Accesses a variety of databases, such as; Employment Security Department, Department of Revenue, Department of Labor and Industries, and Department of Licensing in order to conduct investigations in resolving liability and/or collection issues;
Prepares comprehensive audit reports for review and approval by unit supervisor;
Discusses audit findings and the reasons behind them with employers and/or their representatives such as a Certified Public Accountant or attorney. Identifies issues and works to develop appropriate solutions, and educates the employer on proper recordkeeping and reporting procedures. These meetings could take place with a journey-level or lead auditor in attendance for technical assistance and review;
Identifies potential problem areas that need to be brought to a higher level auditor for guidance; identify any prime contractor liability issues or potential for spin off audit, both of which require auditing of records from additional businesses, and bring those to a lead auditor or supervisor for disposition;
Applies successorship laws, which is the responsibility of a new business to pay the obligations of its former business entity;
Performs basic successor audits under direction of higher level agents and/or audit managers;
Exercises subpoena authority to obtain records;
Learns and performs audits based on reporting methods other than employee hours, such as square footage purchased/installed for the drywall industry;
Supports audits through reconsideration and appeal process, including preparing depositions, attending mediation conferences, and testifying before the Board of Industrial Insurance Appeals or courts;
Conducts audits for the collection of unpaid premiums from the entities that contracted with the business;
Performs other duties as required.
Knowledge and Abilities
Knowledge of: Washington Workers’ Compensation Insurance Manual, WAC 296-17; Title 51 RCW; rules, policies and procedures of the Department of Labor and Industries; auditing and accounting theory and practices; analytical procedures; industry practices; computerized accounting systems; modern business methods, procedures and equipment; education and workshop techniques.
Ability to: learn specialized techniques of tax and financial auditing; understand and apply Workers’ Compensation RCWs and WACs; prepare comprehensive and accurate audit reports; analyze income statements and numerical relationships; work independently; organize and utilize time effectively; maintain cordial and effective relations with a work team, employers and public officials; communicate effectively, both orally and in writing, and conduct employer or provider education (individually and in workshops).
There may be instances where individual positions must have additional licenses or certification. It is the employer’s responsibility to ensure the appropriate licenses/certifications are obtained for each position.
A Bachelor’s degree that includes at least 20 semester or 30 quarter hours in accounting (may include credits from one (1) Finance class or one (1) Business Law class).
one (1) year of professional accounting or auditing experience.
Equivalent education/experience will be considered but must include at least 20 semester or 30 quarter hours in accounting (may include credits from one (1) Finance class or one (1) Business Law class).
Note: A Master’s degree in business administration, public administration, economics for closely allied field, or certification as a Public Accountant, Internal Auditor, Information System Auditor, Data Processor, Management Accountant or equivalent certification may be substituted for one year of the required experience.
Class Specification History
New class, effective September 15, 1995.
New class code, formerly 13775; effective July 1, 2007.
Salary adjustment adopted 6/30/2015, effective 7/1/2015.
Revised definition, distinguishing characteristics; adopted November 12, 2015, effective November 13, 2015.
Revised typical work, knowledge and abilities, and desirable qualifications; updated November 13, 2015.