State Highway Agencies Need To Employ Independent Auditors for Audits of Federal Funds
AFMD-82-5
Published: Oct 30, 1981. Publicly Released: Oct 30, 1981.
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Highlights
GAO reviewed the Department of Transportation's (DOT) plan for auditing federally funded State highway programs because of concern that this plan could violate the independence standard for Government auditing.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | The Secretary of Transportation should direct the Administrator of the Federal Highway Administration to immediately change the draft regulations and inform State highway agencies of this change so that they will engage principal auditors external to their organizations, such as State auditors, State legislative auditors, or certified public accountants. These external auditors should fully test and maximally use the internal auditors' work to reduce costs and avoid duplication. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Audit oversightAuditing proceduresAuditing standardsFederal aid for highwaysFederal aid to statesFederal fundsFinancial managementGround transportationPublic roads or highwaysState-administered programs