IV (impact value) might be correlated to some soil parameters like strength, specific moisture content, unsoaked CBR, dry density (compaction), etc.. all this correlations can be established in laboratory or in field, for instance, lets say, specified compation for certain material is 95 percent, in laboratory you determine de maximum dry density as described by ASTM D698 or D1557, depending on your spec, now, some samples should be preapared following a procedure similar to the indicated in ASTM D 1883 (CBR test), using different blows for each sample, as result of this procedure, you will have several samples having a wide range of compaction values, then using the Impact hammer or clegg hamer a Target Impact Value is determined, now you have a value that should be reach in field,, this value is the measured in field by using the hammer.
In the other hand, in field, having or not the maximum dry density established in lab you can correlate th IV to certain field density and moisture content values by using any of the avaiable test methods to determine on-site density (nuclear gauge, sand cone, rubber ballon, etc). Impact Tests are performed in a place and then compaction or the field density is determined.
I'm not saying that test is flawless, some considerations should be made, for instanse, oversize particles, in any of the compaction methods you can determine a corrected density (field or lab) following the procedure described in ASTM D 4718, however, how these oversize particle may affect the IV, my best guess is doing something like nuclear gauges technicians commonly do, excavating by hand the testing point to observe the soils surronding the test hole, speecific information related to IV test is included within ASTM D 5874
Regarding to bottom of the fill is compacted, I have participated in some forensic jobs to determine if compaction was reached in some embankments and the procedure used was firstly established in a meeting with contractors, project owner, laboratory , if any other firm is participating, and commonly the agreement reach is, perform the first test on top, then partially excavate the layer, using a construction equipment (usually a backhoe)and complete the excavation by hand to the top of the next layer and perform the next test, this procedure is followed until bottom is reached (certain conditions requiere a safety plan for trenching, it is certaing disturbing degree, nevertheless, is there any sampling method in soil testing that not induce certain disturbace in samples?, generally speking, geotechnical engineers and cmt engineers have to work with soil samples as reasonbly undisturbed as can be obtained, so that is why a procedure should be agreed and signed by anyone involved before testing starts, just to avoid that if test results were different to those expected by any of the involved part, no one can come out and said that procedure used to reach certain depth is not adequate, or ask for a re-test or use it as argument in court.