Identify Auditing for the Federal Government FINANCE AND

Identify Auditing for the Federal Government FINANCE AND COMPTROLLER SCHOOL

Terminal Learning Objective ACTION Identify Auditing for the Federal Government. CONDITION STANDARD 10/7/2020 FINANCE & COMPTROLLER SCHOOL 2

Terminal Learning Objective ACTION CONDITION - Given a summary sheet containing AR 11 -7, AR 36 -2, and slides. STANDARD 10/7/2020 FINANCE & COMPTROLLER SCHOOL 3

Terminal Learning Objective ACTION CONDITION STANDARD - With 80% accuracy: Identify and define auditing; state the four types of auditing; verify the auditing standards and structure of the federal gov’t; determine internal review and audit compliance, it’s mission, responsibilities, and compare command audit 10/7/2020 relations.

FINANCE AND COMPTROLLER SCHOOL Army Audit Agency (AAA) at Work “In God we trust, all others we audit. 10/7/2020 FINANCE & COMPTROLLER SCHOOL 5

FINANCE AND COMPTROLLER SCHOOL What is an Audit A systematic process that provides a comprehensive Independent, and objective evaluation with clear communicated results. 10/7/2020 FINANCE & COMPTROLLER SCHOOL 6

FINANCE AND COMPTROLLER SCHOOL Types of Audits • • 10/7/2020 Financial Performance Contract Computer-generated data FINANCE & COMPTROLLER SCHOOL 7

FINANCE AND COMPTROLLER SCHOOL Audit Standards Independence of auditors Qualifications & competence of audit team Due professional care Quality control 10/7/2020 FINANCE & COMPTROLLER SCHOOL 8

FINANCE AND COMPTROLLER SCHOOL Phases of an Audit Planning • Which areas to audit • How and where Review • Materiality • Significance Report • Objective, findings, recommendations (when appropriate) • Monetary and nonmonetary benefits 10/7/2020 FINANCE & COMPTROLLER SCHOOL 9

FINANCE AND COMPTROLLER SCHOOL Government Accountability Office (GAO) Independent, nonpartisan arm of Congress headed by Comptroller General. Assists Congress in legislative and oversight responsibilities. Reviews federal operations. Renders legal decisions and advice. Issues Generally Accepted Governmental Auditing Standards (GAGAS). 10/7/2020 FINANCE & COMPTROLLER SCHOOL 10

FINANCE AND COMPTROLLER SCHOOL Do. D Inspector General (Do. DIG) Assistant IG-Audit Office of the Assistant Inspector General for Auditing (OAIG-AUD). Financial compliance audits. Evaluation of economy, efficiency, and effectiveness. Audit areas: inter-service, internal OSD, Joint Chiefs of Staff, and Security Assistance Program. 10/7/2020 FINANCE & COMPTROLLER SCHOOL 11

FINANCE AND COMPTROLLER SCHOOL Defense Contract Audit Agency (DCAA) Reports to USD (C). Audits Do. D components for procurement and contract administration. Provides reimbursable contract audit service to several government agencies. 10/7/2020 FINANCIAL MANAGEMENT SCHOOL 12

FINANCE AND COMPTROLLER SCHOOL Army Audit Agency (AAA) Audits Army staff and Army activities. Audits may be agency-initiated, DA-directed, or command-requested. Normally multi-location audits. Reorganization into 4 areas: • • 10/7/2020 Acquisition and Materiel Management Forces and Financial Management Installations Management Policy and Operations Management FINANCE & COMPTROLLER SCHOOL 13

FINANCE AND COMPTROLLER SCHOOL Internal Review and Audit Compliance (IRAC) DA/MACOM/Installation level. Belongs to Commander; tailored to the command. Commander's troubleshooter. Reports directly to command group. Audits and Internal Reviews: • Nonappropriated Funds (NAF) • Appropriated funds • Consultant services 10/7/2020 FINANCE & COMPTROLLER SCHOOL 14

FINANCE AND COMPTROLLER SCHOOL IRAC Audit Compliance Functions Administrative support to external audit agencies. Audit coordination. Command reply coordination. Follow-up corrective action. Audit trends follow-up. 10/7/2020 FINANCE & COMPTROLLER SCHOOL 15

FINANCE AND COMPTROLLER SCHOOL IRAC “Should Not…” • Establish accounting policy. • Accomplish routine operational tasks. • Augment an operational element. 10/7/2020 FINANCE & COMPTROLLER SCHOOL STOP 16

FINANCIAL MANAGEMENT SCHOOL Check on Learning 10/7/2020 FINANCE & COMPTROLLER SCHOOL 17

FINANCE AND COMPTROLLER SCHOOL Check on Learning (Cont. ) Q. How many phases in an audit? What are they? 3 – Planning, Review, and Report Q. IRAC uses the commander’s needs and installation circumstances to do what? To get it’s primary direction Q. True / False: Command reply coordination is part of IRAC’s audit compliance functions? True Q. True / False: Establish accounting policy is not part of IRAC’s audit compliance functions? True 10/7/2020 FINANCE & COMPTROLLER SCHOOL 18

FINANCE AND COMPTROLLER SCHOOL Questions 10/7/2020 FINANCE & COMPTROLLER SCHOOL 19

FINANCE AND COMPTROLLER SCHOOL Terminal Learning Objective ACTION Identify Auditing for the Federal Government. CONDITION Given a summary sheet containing AR 11 -7, AR 362, and slides. STANDARD With 80% accuracy: Identify and define auditing; state the four types of auditing; verify the auditing standards and structure of the federal gov’t; determine internal review and audit compliance, it’s mission, responsibilities, and compare command audit relations.