Need for More Effective Cross-Service Auditing Arrangements

Federal Management Circular 73-2 requires that when two or more Federal agencies assist the same organization, they should consider establishing cross-service arrangements under which one Federal agency audits for the other. Such arrangements can conserve manpower, promote efficiency, and minimize the impact of audits on the operations of the auditee. However, the Federal agencies are not using cross-service arrangements to the maximum extent possible. This results in duplicate audit effort, a waste of time and money, and the interruption of program personnel work.