Performing Auditing Services


In performing audit services, DoD auditors should: [1]

  1. Exercise their professional judgment and conduct audit services with reasonable care and professional skepticism in accordance with Generally Accepted Government Auditing Standards (GAGAS).
  2. Document key decisions to reflect the progression of the work performed.
  3. Obtain access to records expeditiously and without delay to accomplish announced audit objectives.

Audit services involve planning, fieldwork, and reporting. The amount of time spent on each stage will vary based on the size, complexity, and nature of the audit. However, formal decisions should be made as progress is made throughout the audit. DoD auditors should be knowledgeable of the specific requirements applicable to planning, fieldwork, and reporting in accordance with GAGAS.

(1) Planning. During the planning stage, auditors gather the needed information on the most significant and material areas for identifying risks and their significance to the audit objective(s).  The emphasis should be on identifying the primary audit objective(s) and designing the audit approach and plan. During planning, auditors should obtain an understanding of internal controls and risks of fraud, as appropriate, that are likely to occur as they relate to the audit objective(s) in order to effectively plan the audit and to determine the nature, timing, and extent of tests to be performed.

(2) Fieldwork. Auditors perform fieldwork to collect, analyze, interpret, and document the information necessary to accomplish the audit objectives, complete the audit plan, and support the audit results. Auditors should complete an assessment of the sufficiency and appropriateness of audit evidence in its entirety during fieldwork according to GAGAS.

  • Auditors should identify findings and recommendations as early as possible in the audit and discuss them with officials in the organization being audited before being presented formally in writing. Management should be given an opportunity to respond to conditions identified by auditors and credit should be given for actions taken that will significantly improve operations, including any alternative actions initiated independent of the audit recommendations.
  • Auditors should hold an exit conference with management unless management declines. This is generally the last informal opportunity to ensure the accuracy of reported information and resolve any factual matters still in dispute prior to release of the draft report.

(3) Reporting. Auditors should prepare a written audit report for each audit in accordance with GAGAS. DoD audit organizations should develop reporting procedures and policies covering the form, content, distribution, and timeliness of reports.

  •  A draft report should normally be prepared and staffed with management for every audit. Management should be asked to comment specifically on any potential monetary benefits or other benefits shown in the draft report.
  •  Based on management comments, changes should be made to the report to reflect agreement on facts and clarify points that may be misinterpreted.
  • Management views on the report contents including opposing views and the auditors’ position on management views should be incorporated into the final report in accordance with GAGAS.

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