Opportunities for Improving Internal Auditing

RED-76-89: Published: Apr 12, 1976. Publicly Released: Apr 12, 1976.

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The Department of Transportation (DOT) consolidated its internal audit staff into a single audit office reporting to the Assistant Secretary for Administration. The audit office functions independently within DOT and has a formalized system for auditing DOT.

Improvements are needed for the office of Audits' planning process. Work performed and planned by the program evaluation groups should be taken into account along with other management activity. The office of Audits, through its audit manual, has procedures for insuring that its audit reports are based on factual information. Procedures were not always followed, and there was some lack of supervisory review. The reporting of audit findings and the report distribution system of the office of Audits appears to adequately respond to the provisions of the standard on reporting. However, the office of Audits has generally deemphasized the need for followup and no longer has a systematic method of inquiring into the disposition of its recommendations.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: Internal auditing could better serve DOT if some policies and practices were changed: the planning of audits be improved; requirements for supervising and reviewing audit work be followed; mangement's responsiveness to audit recommendations be evaluated and reported; and changes be made in the internal audit office staffing, training, and audit procedures. DOT needs to make changes to: reduce the imbalance between the headquarters and field audit staffs; reduce the amount of staff resources spent on obtaining background data and preparing audit programs; use specialists in fields other than accounting and auditing to help evaluate technical programs; and balance auditor training, by location and by the subjects of courses attended.

    Agency Affected:

 

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