P.O. Box 1209 
Seattle, WA 98111-1209
Tel: (206) 728-3000
www.portseattle.org

February 5, 2013
Audit Committee
Port of Seattle
Re:  Required Annual Communication
In accordance with the International Professional Practices Framework (IPPF) promulgated by
the Institute of Internal Auditors and the Government Auditing Standards (GAGAS) issued by
the Comptroller General of the United States, the Internal Audit Director must ensure the
following information is communicated annually to the Audit Committee:
Internal Audit Charter (IPPF 1000)
The activity of the Internal Audit Department is formally defined in the Internal Audit Charter.
The charter is reviewed annually by the Audit Committee, the Chief Executive Officer, and the
Internal Audit Director. The Port Commission provides final approval of the charter.  The
department charter was reviewed and approved by the Port Commission on December 11, 2012
in an open public meeting.
Confirmation of Organizational Independence (IPPF 1110)
At the Port of Seattle, the Internal Audit Department continues to be accorded organizational
independence by reporting functionally to the Audit Committee and administratively to the Chief
Executive Officer.
Quality Assurance and Improvement Program (IPPF 1320 and GAGAS 3.95)
The Internal Audit Department has implemented adequate quality assurance and improvement
program (QAIP) that covers all aspects of internal audit activity. This was evidenced by the
Department passing the external peer review in 2012.
The results of our own internal monitoring process also confirm the Department is in
compliance with the auditing standards. As a team, we have agreed to further improve in the
following areas provided herein as Attachment A.
Sincerely,


Joyce Kirangi, CPA, CGMA
Director, Internal Audit Department
Copies:  Tay Yoshitani, Chief Executive Officer

P.O. Box 1209 
Seattle, WA 98111-1209
Tel: (206) 728-3000
www.portseattle.org

ATTACHMENT A
Promoting Continuous Improvement
1. In order to make our audits more efficient, if no significant residual risks are
identified in an audit assignment, after consulting with the Audit Manager and the
Director, the auditor will write a memorandum to that effect and close the audit. This
approach will allow us more time and opportunity to audit other areas that have not
been audited in the past.
2. We will continuously strive to move our audits toward performance audit as opposed to
compliance testing.
3. In consideration of the cost of audits in relation to potential benefits achieved, we will
constantly re-evaluate the potential impact or consequences of the condition found
(effect) before pursuing further audit tests or writing findings.