FY 2011 External Reviews of the Quality Control Systems of the Military Department Audit Agencies
Abstract
Section 8 (c) (6) of the Inspector General Act of 1978, as amended, requires the Inspector General of the Department of Defense to monitor and evaluate the adherence of Defense auditors to internal audit, contract audit, and internal review principles, policies, and procedures. Generally accepted government auditing standards (GAGAS) issued by the Comptroller General of the United States require that organizations conducting government audits and/or attestation engagements have an appropriate internal quality control system in place and undergo an external review at least once every 3 years by reviewers independent of the audit organization being reviewed. We are issuing a pass opinion on the system of audit quality control for each of the Military Department audit agencies -- Army Audit Agency, Naval Audit Service, and the Air Force Audit Agency. We determined that the systems of quality control for each of the Military Department audit agencies are suitably designed and complied with to provide reasonable assurance that the Military Department audit agencies conform to applicable auditing standards, policies, and procedures in the conduct of their work. We made this determination based on our oversight of the external peer reviews conducted by the Military Department audit agencies on each other and our quality control reviews of their Special Access Program (SAP) audits. Each review team made observations and suggested actions to the audit agencies to strengthen their systems of quality control. Concerns identified during the reviews were not cumulatively significant enough to indicate that material deficiencies existed for complying with GAGAS. However, the Military Department audit agencies should give particular regard to the following: documentation of Independence, audit planning, supervision, audit evidence and documentation, reporting, quality control, documentation of competence, external review process and methodology, and limitations of reviews.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 02, 2012
- Accession Number
- ADA559278
Entities
People
- Randolph R. Stone
Organizations
- United States Department of Defense