Army Audit Readiness Strategy FY 2013 - Army Financial ...

FY 2013 Army Audit Readiness Strategy
3.0 Army Audit Readiness Framework
The Army defines auditability as the capability to identify and mitigate risks, produce audit trails
with appropriate source documentation, and identify populations to support line items on the
financial statements. This risk-based audit readiness framework illustrated in Figure 3 assists
Army organizations to mitigate risk, correct deficiencies, and achieve and sustain auditability.
Figure 3: Army Audit Readiness Framework
The Army’s strategy leverages the Committee of Sponsoring Organizations (COSO) framework
coupled with consideration of generally accepted accounting principles (GAAP), generally
accepted government auditing standards (GAGAS), the Government Accountability Office /
President’s Council on Integrity and Efficiency (GAO/PCIE) Financial Audit Manual (FAM),
and OMB Circular A-123. The framework helps the Army establish an effective internal control
environment, create a reliable audit support infrastructure, and develop the corporate knowledge
necessary to sustain an effective control and audit support environment. Through its execution,
the framework generates business process documentation, risk assessments, and internal control
activity evaluations including “as is” and “to be” systems control evaluations. It identifies
corrective actions required to address impediments to auditability.
The framework incorporates control assessments of business and feeder systems that will
continue to be operational in FY 2017. The assessments include evaluating, documenting, and
testing the design and operating effectiveness of key internal controls critical to financial
Accountability & Audit Readiness: Sustaining Army’s Strength 7