The DoD Auditing Standards are based upon of U.S. Code title 5 Appendix 3 that requires:
- All audit services performed by DoD audit and internal review organizations and non-federal auditors comply with Generally Accepted Government Audit Standards (GAGAS).
- The Inspector General (IG) DoD to ensure that DoD audit services comply with GAGAS.
- GAGAS incorporates the American Institute of Certified Public Accountants (AICPA) fieldwork and reporting standards for financial auditing and attestation engagements and the general standard on criteria for attestation engagements, unless specifically excluded by a formal announcement from the Government Accounting Office (GAO).
- GAGAS is compatible and may be used in conjunction with other professional auditing standards issued by other authoritative bodies. However, if the other professional auditing standards are in conflict with GAGAS requirements, GAGAS shall be the prevailing source.
- President’s Council on Integrity and Efficiency (PCIE) and Executive Council on Integrity and Efficiency (ECIE) Standards, “Quality Standards for Federal Offices of Inspector General,” January 2008 (Reference (f)) may be applicable to DoD audit services and used in conjunction with GAGAS. While GAGAS primarily provides requirements for the performance of individual audit projects, the PCIE and ECIE standards provide requirements for the management of both the individual audit project and the audit organization.
Single Audit Standards and Requirements
Office of Management and Budget Circular No. A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” June 27, 2003, issued in accordance with Chapter 75 of title 31, U.S.C. (Reference (k), commonly known as the “Single Audit Act Amendments of 1996”), sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards.
- Appendix B-Compliance Supplement of No A-133 provides information on the Federal program’s objectives, procedures, and compliance requirements relevant to the audit as well as audit objectives and suggested audit procedures for determining compliance with these requirements.
- AICPA Guide (Reference (l)) is an interpretive publication and provides guidance on the auditor’s responsibility when conducting an audit of financial statements in accordance with Reference (d) and a single audit or program-specific audit in accordance with No A-133 and Chapter 75. The OMB, GAO, and AICPA promulgate applicable standards and requirements; users of this guide should refer to those organizations’ original standards and requirements.
List of Government Standards and Requirements Documents:
- U.S. Code Title 5 Appendix 3
- Office of Management and Budget Circular No. A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” June 27, 2003
- Chapter 75 of title 31, U.S.C. (Reference (k), commonly known as the “Single Audit Act Amendments of 1996”
- President’s Council on Integrity and Efficiency (PCIE) and Executive Council on Integrity and Efficiency (ECIE) Standards, “Quality Standards for Federal Offices of Inspector General,” January 2008
AcqLinks and References:
- DoD Manual 7600.01-M “DoD Audit Manual” – 13 Feb 09
- DoD Instruction 7600.02 “Audit Policies” – 27 April 2007
- DoD Instruction 7650.02 “GAO Reviews and Reports,” – 20 Nov 2006
- Comptroller General of the United States Guidance, “Government Auditing Standard Guidance on GAGAS Requirements for Continuing Professional Education” – April 2005
- DFARS Subpart 237.2 “Advisory and Assistance Services”
- DCAA 7641.90 “Auditing Contractor Information” – Jan 2005
- Example: Purdue University “Internal Office Audit Plan” – 2005
- Template: Internal Audit Plan, U.S. Department of Housing and Urban Development
- Website: DoD Office of Deputy Inspector General of Auditing
- Website: Defense Contract Audit Agency (DCAA)
- Website: DCAA 7640.1 “Contract Audit Manual”
- Website: FAR Part 42 “Contract Administration and Audit Services”