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CPA Audit Quality: Many Governmental Audits Do Not Comply With Professional Standards

AFMD-86-33 Published: Mar 19, 1986. Publicly Released: Mar 19, 1986.
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Highlights

In response to a congressional request, GAO reviewed the quality of certified public accountants' (CPA) audits of federal assistance programs.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Management and Budget The Director of the Office of Management and Budget (OMB) should establish, consistent with the Single Audit Act, more definitive criteria for prohibiting the cost of substandard audits to be charged to federally assisted programs.
Closed – Not Implemented
Federal inspectors general have improved their oversight of CPA audit quality. In addition, recent GAO studies showed that the public accounting profession has significantly improved its audit quality.

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Full Report (56 pages)

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Topics

Government Operations
AccountantsAccounting proceduresAudit oversightAuditing standardsFederal fund accountsFinancial recordsInternal controlsPublic assistance programsQuality controlGovernment auditing standards