Guide for Evaluating and Testing Controls Over Sensitive Payments (Supersedes AFMD-8.1.2)

(This document is no longer appropriate for use and, as of June 2014, GAO has no plans to update it. It may be used for research purposes.)

This publication supersedes AFMD-8.1.2, Guide for Review of Sensitive Payments, November 1988. GAO presented an audit guide for evaluating and testing the effectiveness of internal controls over sensitive payments. Sensitive payments cover a broad spectrum of expenditures including: (1) executive compensation; (2) travel; (3) official entertainment funds; (4) unvouchered expenditures; (5) consulting services; (6) speaking honoraria and gifts; and (7) executive perquisites. Recommended procedures that should be performed and documented when testing internal controls and identifying noncompliance include: (1) considering the control environment impact; (2) understanding internal control systems; (3) identifying specific controls; (4) testing specific controls; (5) assessing control effectiveness and performing additional procedures if necessary; and (6) reporting findings.