Evaluating the Impacts of Federal Improvement and Audit Readiness (FIAR) Compliance
MetadataShow full item record
Over the last thirty years, the Department of Defense slowly became compliant with the CFO 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 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 DoD’s preparation for, and analyze the results of, the three 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. We review the criticisms of financial accounting and audits and finally, the utility of management cost accounting is discussed.
Acquisition Research Program Sponsored Report SeriesSponsored Acquisition Research & Technical Reports
RightsThis 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.
NPS Report NumberUMD-FM-22-002
Showing items related by title, author, creator and subject.
Lucyshyn, William; Hunt, Dylan (Monterey, California. Naval Postgraduate School, 2021-05-10); SYM-AM-21-056Over 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 ...
Christian, Ronald D. (Monterey, California. Naval Postgraduate School, 1988);This thesis examines the effects of audits on the Navy's Buy Our Spares Smart (BOSS) Program. The BOSS program was established in 1983 in response to the Department of Defense's efforts to resolve the spare parts pricing ...
Evaluation of fraud detection data mining used in the auditing process of the Defense Finance And Accounting Service Jenkins, Donald J. (Monterey, California. Naval Postgraduate School, 2002-06);The Defense Finance and Accounting Service (DFAS) uses data mining to analyze millions of vendor transactions each year in an effort to combat fraud. The long timeline required to investigate potential fraud precludes DFAS ...