Evaluating the Impacts of Federal Improvement and Audit Readiness (FIAR) Compliance
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Authors
Lucyshyn, William
Hunt, Dylan
Subjects
Advisors
Date of Issue
2021-05-10
Date
05/10/21
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
Over the last 30 years, the Department of Defense (DoD) slowly became compliant with the Chief Financial Officers Act of 1990, which required federal agencies to undergo an annual financial audit. In 2018, the DoD finally completed its first audit and continued this trend in 2019. This paper seeks to understand the benefits of producing auditable financial statements, their costs, and any impacts on the DoD's acquisition system. We describe the several forms of accounting and review the academic accounting literature that examines the value of audits. We describe the DoD's preparation for and analyze the results of the two completed audits to look more broadly at the benefits. These include uncovering previously unaccounted inventory and improvements to internal accounting systems, even as no instances of massive waste or fraud were identified. Finally, the utility of management cost accounting is discussed.
Type
Presentation
Description
Series/Report No
Department
Organization
Identifiers
NPS Report Number
SYM-AM-21-056
Sponsors
Prepared for the Naval Postgraduate School, Monterey, CA 93943.
Naval Postgraduate School
Naval Postgraduate School
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Approved for public release; distribution is unlimited.
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.