What are inadequate records and how can they be avoided?

Question: What are inadequate records and how can they be avoided?

Answer: Inadequate is a harsh word. It means that someone or something is falling short.

When referring to inadequacy in terms of records under the International Fuel Tax Agreement (IFTA) or the International Registration Plan (IRP), it can be confusing. What exactly are inadequate records?

Adequate vs. inadequate: In an audit, the auditor makes an initial assessment to determine whether a carrier’s records are adequate or inadequate.

Adequate means that the records are appropriate and sufficient. Appropriate refers to the quality of the records, meaning that they contain the right kinds of information. Sufficient refers to the quantity, or number, of the records, meaning that there are enough records to audit.

If the auditor determines that the records are appropriate and sufficient, the carrier is given an “adequate” rating. The adequate rating is simply a way to determine whether the auditor has enough data to proceed with the audit.

However, if the quality and quantity of the records is lacking, the carrier is given an inadequate rating. Inadequate means exactly what has been described above — that a carrier has fallen short and that the records are not meeting expectations.