The Government Accountability Office has recommended the U.S. Navy fully implement the Defense Department‘s Financial Improvement and Audit Readiness guidance for the service branch’s Fund Balance With Treasury plan.
GAO said Friday implementation of the FIAR in areas of process analysis, prioritization, internal control assessment, testing and supporting documentation evaluation can help support the Navy’s audit readiness.
Auditor discovered the Navy has not fully implemented four tasks under the Discovery phase of the FIAR guidance that include to report identity document processes, prioritize of audit readiness efforts, assess and test controls and evaluate supporting documentation.
GAO noted the gaps included audit readiness prioritization and strategy implementation, as well as documentation of FBWT processes and information technology general computer controls for significant systems in system narratives and flowcharts.
GAO conducted the study in an effort to determine the extent of the Navy’s efforts towards the Discovery phase of the general fund FBWT financial improvement plan as part of a mandate to audit the government’s consolidated financial statements including activities and balances of executive branch agencies.
