The tax department is auditing all used car dealerships on Prince Edward Island. Treasurer Pat Mella says the audit follows a two-year RCMP investigation into odometer tampering.

"There are customers of all of the used car dealers that are being contacted to verify that the receipt indicating how much they paid for the car is in compliance with what the dealer has on their receipt as what they charged for the car," says Mella.

Mella says she expects the audits will show most used car dealers are doing business properly. She says fewer than one per cent of the dealers on P.E.I. have had problems with the law.