Quality Auditing Company, Inc. - Page 6




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               In so administering the certification program, AISC                    
          initially contracted with Abstect, a private, for-profit company,           
          to conduct the facility audits.  Problems with this arrangement             
          developed, however, because a profit-driven enterprise was                  
          unwilling to reinvest a sufficient portion of the fees charged to           
          achieve the level of auditor training and audit consistency                 
          necessary for a uniform, reliable certification program.  AISC              
          therefore provided the startup capital to establish petitioner as           
          an independent, nonprofit corporation.  Petitioner’s articles of            
          incorporation state that its purpose is “To conduct quality                 
          certification and inspection programs which meet the requirements           
          of private and public standards setting bodies and governmental             
          agencies”.  Substantially all of petitioner’s time and resources            
          are dedicated to performing the quality audit function, and no              
          other entities presently furnish this service.                              
               Petitioner is governed by a board of directors consisting of           
          the sitting chairman of AISC; the sitting chairman of AISC’s                
          Committee on Fabricating Operations and Standards; petitioner’s             
          president and CEO; and two elected members.  Petitioner operates            
          by hiring and training independent contractors to inspect and               
          audit the facilities of fabricators applying to AISC for                    
          certification.  These auditors are paid by petitioner $400 per              
          audit day plus expenses, which include airfare, lodging,                    
          transportation, and telecommunications.  Petitioner also pays               






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Last modified: May 25, 2011