MBC Capabilities Brief2011

Solutions within ReachSolutions Within Reach

Audit ReadinessApril 28, 2015

Introduction

• CSCI Briefers• Company Overview• Purpose

– Increase awareness for upcoming audits – Share lessons learned from internal sustainment testing– Provide best practices for preparation and communication for sustaining Audit

Readiness

Topics of Discussion

• Defining Audit Readiness• Levels of Audit Readiness • MICP and Audit Readiness • Understanding the Requirements • Lessons Learned • Best Practices• Sustaining Audit Readiness • Resources and Questions

Defining Audit Readiness

What is Audit Readiness?

Audit Readiness Definition: A state of being prepared to demonstrate proper manual and automated processes and documents (i.e. process controls, financial controls, and information technology controls) that are executed in accordance with policy and accounting standards.

Levels of Audit Readiness

• Reporting Entity vs. Non- Reporting Entity • What has changed and why?• What has NOT changed?

Reporting Entity

Non-Reporting Entity

MICP and FIAR

• Statement of Assurance• Risk Control Assessments • Risk Assessment of FIAR Programs

Understanding The Requirements

• What are Phases of an Audit?– Discovery– Corrective Action– Evaluation– Assertion– Validation– Audit

• What is the auditor looking for?• What is your Role?

Lessons Learned

• Leadership Involvement* • Responding to Audit Request• Awareness

• Conduct Sustainment Testing • Audit Preparation• Leadership Involvement*

Best Practices

Todays Focus:

• Training

• Communication

• Internal Controls

Sustaining Audit Readiness

• Training • Communication• Review of Internal Controls

Audit Readiness is not a new requirement…. This

how business should have ALWAYS been done!

• DoD FIAR Guidance, April 2015 http://comptroller.defense.gov/fiar/fiarguidance.aspx

• DoD Management Internal Control Program http://comptroller.defense.gov/fiar/micp.aspx

• US Government Accountability Office DoD Financial Management http://www.gao.gov/key_issues/dod_financial_management/issue_summary

Resources and Questions: