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Audit Resolution: Strengthened Guidance Needed to Ensure Effective Action

AFMD-92-16 Published: Mar 24, 1992. Publicly Released: May 15, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the extent to which the managers of four federal agencies acted on inspector general (IG) audit recommendations, focusing on whether the: (1) managers properly closed and documented IG audit recommendations; (2) Office of Management and Budget's (OMB) guidance sufficiently detailed proper closing and documentation procedures; and (3) OMB guidance reflects the reporting requirements imposed by the Inspector General Act Amendments of 1988.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Management and Budget The Director, OMB, should revise OMB Circular A-50, "Audit Followup," to clarify what agencies must do before closing out audit recommendations. Specifically, the circular should require that agencies close recommendations when agreed-upon corrective actions have been implemented, when alternative actions have been taken that essentially meet the auditors' intent, or when circumstances have changed and the recommendations are no longer valid.
Closed – Not Implemented
OMB does not intend to revise its audit followup circular to specifically include the recommendations.
Office of Management and Budget The Director, OMB, should revise OMB Circular A-50, "Audit Followup," to clarify what agencies must do before closing out audit recommendations. The circular should require that agencies provide the documentation necessary to verify that agreed-upon corrective actions have been implemented, alternative actions have been taken that essentially meet the auditors' intent, or circumstances have changed and the recommendations are no longer valid. In addition, the guidance should reflect the reporting requirements and pertinent definitions contained in the Inspector General Act Amendments of 1988.
Closed – Not Implemented
OMB does not intend to revise its audit followup circular to specifically include the recommendations.

Full Report

Full Report (22 pages)

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Topics

Auditing and Financial Management
Administrative remediesAudit oversightAudit reportsAuditsFederal agenciesFederal records managementFinancial managementNoncomplianceRecordsReporting requirements