If the organization is also required to undergo a Single Audit, the auditor must also report findings related to Federal programs in accordance with Uniform Guidance.įindings are reported in a format outlined by GAS and Uniform Guidance to identify the following elements: ![]() In governmental audits, the auditors are required to report audit findings in accordance with Government Auditing Standards (GAS). When that happens, the auditor must evaluate the deficiency and determine whether to report a finding. However, during the process of understanding internal controls for a client, the auditors may discover that controls are not designed well or they may not be functioning as intended. ![]() The auditors are not required to give an opinion on the operating effectiveness of internal controls. As part of an audit, auditors are required to obtain an understanding of internal control in order to identify and assess the risks of material misstatement. If that is the purpose of an audit, then why do auditors write findings? The answer lies in the audit standards. Auditors do not audit every transaction, but rather sample various transactions in accordance with the audit plan. While this may be shocking to some, the goal of the audit is to assure the public that the financial statements of an entity are fairly stated, in accordance with the applicable reporting framework. Is it possible? Does such a thing as a perfect audit exist? What defines a perfect audit for you? If I had to write a definition, based on many years of performing audits and talking with clients, I believe most would say a perfect audit is one with no findings.īelieve it or not, the goal of an audit is not to write findings. To do so, the Army plans to prioritize remediation of significant findings that inhibit progress using an agile approach focused on specific deficiencies certified by the audit firm. The service also plans to invest in training to improve data quality, execution of policies and procedures, and provision of supporting audit evidence.A Perfect Audit by Jennifer L. The Army is working to remediate these weaknesses, devising corrective action plans to tighten oversight and internal controls over financial reporting. The Army’s goal is to obtain an audit opinion for the General Fund and Working Capital Fund in the next five to ten years. The audit also assessed 13 material weaknesses for the Army General Fund, and 14 for the Army Working Capital Fund.Īs noted in the FY 2021 Army Financial Report, many of the areas identified for improvement overlap between the two funds. This increase provides enhanced visibility into Army assets, leading to more-informed decision making. An expansion of controls testing at five times as many munitions retail locations in FY 2021 compared to FY 2020.A significant decrease in the number of repeat IT Notice of Findings and Recommendations for the General Fund and Working Capital Fund (35% and 22%, respectively).This reduction helps the Army to improve its tracking and use of appropriated funds. ![]() A 70% reduction in differences between the Army and U.S. ![]() Specific areas of growth in the Army’s FY 2021 audit include: The service also increased the responsiveness and improved the accuracy of data provided to support auditor testing, and made essential improvements to Information Technology (IT) application and security controls. “Although the Army still has some challenges to navigate, we continue to show progress toward obtaining a clean audit opinion,” said Assistant Secretary of the Army for Financial Management and Comptroller, Caral E. Spangler. “Overall, we have taken a deeper dive into our processes to make necessary corrections, and enhanced communication with our auditors.” The Army continues to make tangible audit progress, demonstrating improved accountability of property, and Soldier and Civilian pay and benefits. The full financial reports are available here.Īs required by law, the Army conducted its fourth annual audit of the financial statements for its General Fund and Working Capital Fund. Auditors issue a disclaimer of opinion when the data or documentation provided is insufficient. WASHINTGTONToday, the Army announced completion of its Fiscal Year (FY) 2021 audits, which resulted in disclaimers of opinion.
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