CDFM Module 3 competency 4 –
Auditing Exam-Graded A
What did CFO Act require? - ANS-Federal agencies to prepare financial statements
Largest 24 federal deps/agencies had to create office of CFO
New position - Deputy Director for management - created in OMB.
What is the lasting impact of the CFO Act? - ANS-Transformed the federal financial
management system from backroom function, out of sight out of mind, to a boardroom
function, a key component of planning and decision-making at the executive level.
What does the FIAR methodology do? - ANS-Maximizes potential for successful
financial statement audits by considering methods financial statement auditors use to
assess financial statement accuracy in accordance with auditing standards codified by
American Institute of CPAS (AICPA).
What's the primary purpose of an FS audit? - ANS-To receive an unmodified opinion
In addition to reporting on financial statement audits, performed in accordance with
GAGAS, what types of reports are required? - ANS-Reports on ICOFR
What standards does GAGAS incorporate? - ANS-AICPA Statements on Auditing
Standards (SAS)
What are the most crucial aspects of an agency to have sorted out to pass a FS audit? -
ANS-financial reports and assets
What are the two priority areas related to achieving a successful audit USD(C) has
designated? - ANS-Improving budgetary information and mission critical asset
information
What does the FIAR guidance provide in terms of path for DoD agencies to follow? -
ANS-It provides a critical path for all DoD entities to follow and balances need for short-
term accomplishments against long-term goal of achieving an unmodified opinion
List the 4 FIAR waves - ANS-1. Appropriations received audits (been completed)
2. Statement of Budgetary Resources Audit (including FBwT reconciliation)
3. Mission Critical Asset E&C Audit
4. Full financial statements audit
, What does the SBR show? - ANS-The flow of funds
What does wave 2 involve? - ANS-All processes, internal controls, systems and
supporting documentation that will be within scope of an SBR audit
What does wave 3 include? - ANS-E&C, assets recorded in APSR - doesn't include
valuation (which is included in wave 4)
What must DoD internal audits achieve? - ANS-Make sure that:
1. Plans are established, including strategic planning requirements established by
GPRA 1994 and GPRMA 2010
2. Written policies/procedures are provided to guide audit staff
3. Policies procedures include receiving, controlling, screening, and assuring
appropriate disposition of allegations involving waste, mismanagement, fraud, and
abuse
When can doD contract for non-federal auditors to perform audit services on DoD
projects? - ANS-1. Expertise required to perform audit not available within DoD audit
organization
2. temp. assistance is required to meet audit-reporting requirements mandated by law
or DoD regulations
What are the types of audits? - ANS-Financial
Performance
Attestation
Which type of audit is most common? - ANS-Performance audits
What are two conditions of all federal audits? - ANS-They are all intitiated/conducted by
basic legislative authority or in response to congressional or other requests (often by
management)
Generally defined as financial, performance, or attestation
What does the GMRA 1994 require as it relates to audits? - ANS-Treasury to annually
prepare and submit to Pres. and congress audited FS of the preceding FY, covering all
accounts and associated activities of the Exec. branch of US
What does the DCAA do? - ANS-the Defense Contract Audit Agency audits all
necessary contract audits of DoD - provides accounting and financial advisory services
regarding contracts and subcontracts to all DoD components responsible for
procurement and contract administration.
Auditing Exam-Graded A
What did CFO Act require? - ANS-Federal agencies to prepare financial statements
Largest 24 federal deps/agencies had to create office of CFO
New position - Deputy Director for management - created in OMB.
What is the lasting impact of the CFO Act? - ANS-Transformed the federal financial
management system from backroom function, out of sight out of mind, to a boardroom
function, a key component of planning and decision-making at the executive level.
What does the FIAR methodology do? - ANS-Maximizes potential for successful
financial statement audits by considering methods financial statement auditors use to
assess financial statement accuracy in accordance with auditing standards codified by
American Institute of CPAS (AICPA).
What's the primary purpose of an FS audit? - ANS-To receive an unmodified opinion
In addition to reporting on financial statement audits, performed in accordance with
GAGAS, what types of reports are required? - ANS-Reports on ICOFR
What standards does GAGAS incorporate? - ANS-AICPA Statements on Auditing
Standards (SAS)
What are the most crucial aspects of an agency to have sorted out to pass a FS audit? -
ANS-financial reports and assets
What are the two priority areas related to achieving a successful audit USD(C) has
designated? - ANS-Improving budgetary information and mission critical asset
information
What does the FIAR guidance provide in terms of path for DoD agencies to follow? -
ANS-It provides a critical path for all DoD entities to follow and balances need for short-
term accomplishments against long-term goal of achieving an unmodified opinion
List the 4 FIAR waves - ANS-1. Appropriations received audits (been completed)
2. Statement of Budgetary Resources Audit (including FBwT reconciliation)
3. Mission Critical Asset E&C Audit
4. Full financial statements audit
, What does the SBR show? - ANS-The flow of funds
What does wave 2 involve? - ANS-All processes, internal controls, systems and
supporting documentation that will be within scope of an SBR audit
What does wave 3 include? - ANS-E&C, assets recorded in APSR - doesn't include
valuation (which is included in wave 4)
What must DoD internal audits achieve? - ANS-Make sure that:
1. Plans are established, including strategic planning requirements established by
GPRA 1994 and GPRMA 2010
2. Written policies/procedures are provided to guide audit staff
3. Policies procedures include receiving, controlling, screening, and assuring
appropriate disposition of allegations involving waste, mismanagement, fraud, and
abuse
When can doD contract for non-federal auditors to perform audit services on DoD
projects? - ANS-1. Expertise required to perform audit not available within DoD audit
organization
2. temp. assistance is required to meet audit-reporting requirements mandated by law
or DoD regulations
What are the types of audits? - ANS-Financial
Performance
Attestation
Which type of audit is most common? - ANS-Performance audits
What are two conditions of all federal audits? - ANS-They are all intitiated/conducted by
basic legislative authority or in response to congressional or other requests (often by
management)
Generally defined as financial, performance, or attestation
What does the GMRA 1994 require as it relates to audits? - ANS-Treasury to annually
prepare and submit to Pres. and congress audited FS of the preceding FY, covering all
accounts and associated activities of the Exec. branch of US
What does the DCAA do? - ANS-the Defense Contract Audit Agency audits all
necessary contract audits of DoD - provides accounting and financial advisory services
regarding contracts and subcontracts to all DoD components responsible for
procurement and contract administration.
