46 CFR 138.405: Conduct of internal audits under the TSMS

Last reviewed: October 14, 2026

This section covers how internal audits of the towing safety management system (TSMS) are conducted. Audits are done by or for management and must be deep and broad enough to check procedures, implementation and vessel compliance. The auditor must have authority to verify TSMS effectiveness.

Applies toOwners and managing operators who conduct internal audits of their TSMS, and the auditors who perform them.

What it says

  1. Management conducts internal audits, or has them conducted on its behalf. A designated employee or contracted individuals may perform them, and contractors must audit as if they were employees of the owner or managing operator.

    46 CFR 138.405(a)“Internal audits are conducted by, or on behalf of, the management and may be performed by a designated employee or by contracted individual(s)”

  2. An internal audit does not have to be one event. It can be taken in segments over time.

    46 CFR 138.405(b)“Internal audits are not necessarily conducted as one event; they can be taken in segments over time.”

  3. Internal audits must be deep and broad enough to ensure the owner or managing operator established adequate procedures and documentation to comply with the TSMS requirements of this part.

    46 CFR 138.405(c)“Internal audits must be of sufficient depth and breadth to ensure the owner or managing operator established adequate procedures and documentation to comply with the TSMS requirements of this part”

  4. Internal audits must also ensure the TSMS was implemented throughout all levels of the organization, and that the owner or managing operator's vessels comply with this subchapter and the TSMS.

    46 CFR 138.405(c)“that the TSMS was implemented throughout all levels of the organization, and that the owner or managing operator's vessels comply with this subchapter and the TSMS”

  5. The auditor must have the authority to examine documentation, question personnel, examine vessel equipment, witness system testing, and observe personnel training, including drills, as necessary to verify TSMS effectiveness.

    46 CFR 138.405(d)“The auditor must have the authority to examine documentation, question personnel, examine vessel equipment, witness system testing, and observe personnel training, including drills”

Common questions

Who can perform an internal audit under Subchapter M?

A designated employee or contracted individuals may perform it. Contracted auditors conduct the audit as if they were employees of the owner or managing operator.

“may be performed by a designated employee or by contracted individual(s) who conduct the audit as if an employee of the owner or managing operator”

Does an internal audit have to be done all at once?

No. Internal audits are not necessarily conducted as one event, and they can be taken in segments over time.

“Internal audits are not necessarily conducted as one event; they can be taken in segments over time.”

What authority must an internal auditor have?

The auditor must have the authority to examine documentation, question personnel, examine vessel equipment, witness system testing, and observe personnel training, including drills, as necessary to verify TSMS effectiveness.

“observe personnel training, including drills, as necessary to verify TSMS effectiveness”

The text of 46 CFR 138.405

Electronic Code of Federal Regulations (eCFR), current as of April 16, 2026 · Read it on eCFR

Conduct of internal audits

(a) Internal audits are conducted by, or on behalf of, the management and may be performed by a designated employee or by contracted individual(s) who conduct the audit as if an employee of the owner or managing operator.

(b) Internal audits are not necessarily conducted as one event; they can be taken in segments over time.

(c) Internal audits must be of sufficient depth and breadth to ensure the owner or managing operator established adequate procedures and documentation to comply with the TSMS requirements of this part, that the TSMS was implemented throughout all levels of the organization, and that the owner or managing operator's vessels comply with this subchapter and the TSMS.

(d) The auditor must have the authority to examine documentation, question personnel, examine vessel equipment, witness system testing, and observe personnel training, including drills, as necessary to verify TSMS effectiveness.

The plain-English explanation on this page was written with AI from the regulation text above and checked automatically before publishing: every quote appears in the text, every number comes from it, and a second model confirmed each statement adds nothing the text doesn't say. Regulation text current as of April 16, 2026. The regulation text governs. RegKnot is not affiliated with the U.S. Coast Guard.